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More than 220K Foreclosure Review Checks Scheduled for May 3

The checks for ""Goldman Sachs"":http://www.goldmansachs.com/ and ""Morgan Stanley"":http://www.morganstanley.com/ borrowers covered under the foreclosure review settlement should be mailed out Friday, May 3, the ""Federal Reserve"":http://www.federalreserve.gov/ announced Monday.

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The next batch of payments will go out to more than 220,000 borrowers who had a mortgage in any stage of the foreclosure process in 2009 and 2010 that was serviced by one of the former subsidiaries, Litton Loan Servicing LP or Saxon Mortgage Services, Inc. The checks for the borrowers are valued at $247 million.

The payments result from agreements reached in January with federal regulators and 13 servicers that replaced the Independent Foreclosure Review. Under the new agreement, the servicers must provide $3.6 billion in cash payments to 4.2 million borrowers.

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Checks were first mailed on April 12, with the third wave of checks released April 26. Since then, 1.2 million checks valued at $1.2 billion have been cashed or deposited, according to the Fed's announcement.

Payments for the borrowers range from $300 to $125,000, and payment amount is based how borrowers were categorized after determining the stage of the foreclosure process of the borrower and the type of servicer error, if any. However, the Fed stated that the payment amounts for Goldman Sachs and Morgan Stanley borrowers may differ in some cases from borrowers in the same categories with the other 11 servicers because Goldman Sachs and Morgan Stanley borrowers were not able to request a review of their foreclosure file.

The other 11 servicers--Aurora, Bank of America, Citibank, HSBC, JPMorgan Chase, MetLife Bank, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo--were part of consent orders issued in 2011 that required an Independent Foreclosure Review at the request of the borrower.

Borrowers with the 13 servicers are advised to call the paying agent, Rust Consulting with their questions or to update contact information. Rust consulting can be reached at 1.888.952.9105. The Fed also warned of scams and said to beware of anyone asking borrowers to call a different phone number or to pay a fee to receive payment under the agreement.

About Author: Esther Cho

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