On May 23, the Board of Governors of the Federal Reserve System issued a video that gave instructions to borrowers who may have been injured by improper foreclosures on how to seek relief. Both English and Spanish versions of the video are available for viewing on the Federal Reserve Board’s website and on YouTube.
The brief announcement reminds borrowers that, as part of the enforcement actions taken in April 2011 by federal banking regulatory agencies, they may be eligible to receive compensation if an independent review finds evidence of direct financial injury due to servicer error. Borrowers are eligible for a review if their primary residence was in the foreclosure process in 2009 or 2010 and their mortgage loan servicer is participating in the Independent Foreclosure Review. The deadline to request a foreclosure review is July 31.
The announcement continues the trend of federal banking agencies taking measures to demonstrate their commitment to protecting consumers.
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