The Federal Reserve and the Office of the Comptroller of the Currency have announced that payments to 4.2 million borrowers covered under January's settlement with 13 mortgage servicers will begin on April 12.
The settlement provides $3.6 billion in cash payments to borrowers. The payments will range from $300 to $125,000. The regulators say that checks will be sent in several waves, beginning with 1.4 million checks on April 12. The final wave is expected in mid-July.
The regulators add that borrowers accepting a payment will still be able to take other actions against the servicers related to their foreclosure.