This story appeared in Bank Digest.
The Federal Reserve Board plans to redistribute unclaimed funds under the Independent Foreclosure Review Payment Agreement to eligible borrowers of mortgage servicers regulated by the Fed who have cashed or deposited checks.
According to the Fed's press release, the Independent Foreclosure Review Payment Agreement, overseen by the Fed and the Office of the Comptroller of the Currency, provided $3.9 billion for borrowers of 14 servicers whose homes were in any stage of the foreclosure process in 2009 or 2010. As of October 2015, more than $3.5 billion had been cashed or deposited by eligible borrowers.
The Fed said that borrowers of servicers it regulates who have not yet cashed or deposited their original checks have until Dec. 31, 2015, to request replacement checks and that they must cash or deposit their checks by March 31, 2016. The release also said that in mid-2016, the Fed will direct the paying agent to redistribute any funds remaining after March 31, 2016, to borrowers of these servicers who have previously cashed or deposited their original checks.