Just when you thought that the Independent Foreclosure Review couldn't be any more of an utter failure . . .
According to DealBook, the checks being sent out as part of the IFR settlement are bouncing. 1.4 million checks have gone out so far, and homeowners are reporting that those checks are being returned for insufficient funds.
It turns out that the consulting firm hired to manage the payments failed to put $3.6 billion into the account from which the checks were cut. There are no reports as to how much money Rust Consulting has made as a result of the IFR, but it is safe to assume that it was overpaid at any price.
While this accounting fail makes for great theater, it simply adds to the strain on homeowners who have lost their homes or who suffered other injury at the hands of mortgage servicers. This excerpt from the Dealbook article is particularly telling:
Other homeowners like Yanko Matias, of Lynn, Mass., say they are afraid to cash the checks. Mr. Matias, 37, was initially wary that the $500 he received was just another empty promise - or worse, a scam.
"I just want my house back," Mr. Matias said.
There's really not much more to say.