Source: Danielle Douglas, Washington Post ( Free Registration )

The Federal Reserve said Wednesday that about 96,000 homeowners who are entitled to a cut of a $3.6 billion settlement with mortgage servicers accused of faulty and fraudulent foreclosures received less than they were owed.

Rust Consulting, a firm hired to distribute the checks, mistakenly sent borrowers whose mortgages were serviced by Goldman Sachs and Morgan Stanley the wrong amounts, but will issue new checks to make up the difference around May 17. The Fed said it became aware of the problem on Friday.

Read Full Article: Borrowers shorted on mortgage relief checks