In 2014, there was an agreement made by five states, Citigroup Inc. and the federal government to settle claims. It was alleged that Citi sold residential mortgage loans that were defective. Citi committed to offering $2.5 billion in consumer relief as a Settlement Agreement. Keep reading to know more about Citi Monitorship.
The Settlement Agreement states that Citi should pay a total of $2.5 billion in consumer relief and a total of $4.5 billion in cash payments. The settlements take various forms. The Settlement Agreement shows the kind of activities and modifications that qualify for consumer relief. Citi follows their loan and credit criteria to know the relief to offer. Citi is not supposed to modify any loan. It must be consistent with the terms of the agreement. It is advisable to call Citi to know if you qualify for relief under the Settlement Agreement.
There are benefits that the settlement offers. Citi provides loan modifications for homeowners whose home purchase loan is higher compared to the market value. Citi refinances homeowners and offers down payment for refinancing. The Settlement Agreement does not state specific consumer relief that one should get. Citi determines individual eligibility. The Monitor oversees the compliance of Citi to ensure they offer sufficient relief to consumers.
The purpose of the Monitor is to ensure the public is informed and track the progress of Citi to ensure they meet the Settlement Agreement. However, the Monitor does not have the power to determine the form of consumer relief offered by Citi. Citi and government entities are obligated to offer a cash payment of $4.5 billion.
The Monitor comprises of a team that tests the activities of Citi to determine if they meet consumer relief obligations provided in the Settlement Agreement. The team should adhere to a transparent process and provide quarterly reports that show Citi's progress. The Monitor should be independent and rigorous in order to foster public confidence. The Monitor communicates to the public by providing regular updates through public statements and websites.
The updates provided by the Monitor should include an overview of the affordable rental housing market. It should have a description of Citi's obligation and analysis under the Settlement Agreement. The Monitor shows have an explanation of the validation process and the observations that they have made.
There is usually a timeline of all consumer relief. This timeline is included in the Settlement Agreement. If by that time the Monitor states that Citi has not met its responsibilities, Citi is supposed to make the remaining cash obligation. The remaining cash payment is given to a non-profit organization that offers programs such as foreclosure prevention, neighborhood stabilization and housing counseling.
Additionally, can get reports provided by the Monitor on their website. You will be able to know if Citi has met its obligations under the Settlement Agreement. You will also know the findings of the Monitor. There are different reports provided by the Monitor. You just need to download the report that you want to view and check it out.