Update on IFR Check Cashing Issue
As you may be aware, some early recipients of checks for the Independent Foreclosure Review (IFR) Payment Agreement were unable to cash their checks. National CAPACD and others joined the Federal Reserve on an emergency call earlier this morning to learn more of the details.
- The process of cashing the check requires the financial institution to call Rust Consulting (consulting firm handling the distribution of funds) to verify the validity of the check and ensure positive ID. However, some of the calls went to Huntington National Bank (the paying bank) instead. This led to misinformation and the borrower being told that the check can’t be cashed.
- The Federal Reserve learned of these problems yesterday via their consumer hotline and worked with Rust Consulting and Huntington National Bank to ensure that these problems have been corrected and that funds are available to cash all checks.
- The Federal Reserve does not know yet how many borrowers have been affected.
- At this point, they have only heard about problems with borrowers cashing their checks. Currently, they haven’t heard about issues with deposits.
- Checks are good for 90 days, at which point the Federal Reserve will follow up with checks that have not been cashed. Because of the current situation, the Federal Reserve is considering the need to follow up with borrowers and the banks sooner.
Anyone that encounters problems with their checks should contact Rust Consulting at 888-952-9105. Also, please notify Rust and the Federal Reserve if you know of anyone who was charged an NSF fee as a result of the problem.
You, your networks, or borrowers may contact the Federal Reserve Consumer Help (FRCH) line with stories of problems cashing checks. We encourage you to use the “send us an email” feature and start the message with “IFR Payment Agreement Checks.” This will prompt FRCH to forward messages directly onto the Fed’s internal IFR team.