Generally, there have been claims from five states as well as the federal government that Citigroup packaged, marketed, and even sold substandard residential mortgages prior to the financial crisis. This has been resolved through the Settlement Agreement that obliges Citigroup to pay cash payments of $4.5 billion and $2.5 billion worth in consumer relief. Nonetheless, the settlement of the consumer relief obligations will be overseen by the citigroup monitor.
Ideally, the relief is to take various forms. The forms include loan modifications for underwater homeowners, financing of affordable rental housing for low-income persons residing in high-cost places, as well as refinancing for homeowners. Other forms are such as down payment and closing assistance when the clients are refinancing as well as support towards reinvestments in the community and donations to organizations for community aid.
The monitor has a specified role that it undertakes. To begin with, it ensures that Citigroup fulfills its obligation to offers a relief of $2.5 billion to its clients. The oversight role essentially entails progress tracking, informing the public as well as ensuring that all the requirements as specified under the settlement agreement is fulfilled. Beyond these settlement requirements, the monitor possesses no authority on the kinds of consumer reliefs to be provided by the financial institutions or the consumers who receive the relief.
The monitoring rules are not designed to ensure that the clients get relief for $4.5 billion. Citi gives this payment s on a voluntary basis and it is not obligated by any person to give relief. All the procedures are carried out through various government organizations and the banking institutions. The monitor has to operate in a transparent manner and all the operations must be clearly understood by all people.
Also, quarterly reports that reflect the progress made toward fulfilling the obligations will also be provided by the regulator. Under the Settlement Agreement, there is an independent monitor appointed to oversee the fulfillment of the agreements. The responsibility is to ensure that all obligations in the provision of the $2.5 billion consumer relief is undertaken.
On the other hand, in the event that the overseer determines that the financial institution fails to fully undertake the agreement by December 2018, Citi will be obliged to pay the difference through paying the equivalent amount to the Neighbor Works America. The Neighbor Works America is a non-profit organization that undertakes services such as counseling on housing, neighborhood stabilization services, as well as foreclosure prevention services and so on.
In order to make the monitorship rigorous and independent, the process is expected to be open and transparent in order to also foster the confidence of the public in the roles of the oversight role. The oversight is also to provide periodical reports in order for parties involved to give their own assessments.
Overall, it is expected that the monitor also corresponds and makes communications with the public and this is generally by providing regular updates as pertains to compliance by Citi to the specifics contained in the agreement for claims settlement. This will be basically done through websites, meetings for interested parties and through the release of regular reports on the progress made. As a matter of fact, many homeowners will ultimately benefit from this agreement.
Ideally, the relief is to take various forms. The forms include loan modifications for underwater homeowners, financing of affordable rental housing for low-income persons residing in high-cost places, as well as refinancing for homeowners. Other forms are such as down payment and closing assistance when the clients are refinancing as well as support towards reinvestments in the community and donations to organizations for community aid.
The monitor has a specified role that it undertakes. To begin with, it ensures that Citigroup fulfills its obligation to offers a relief of $2.5 billion to its clients. The oversight role essentially entails progress tracking, informing the public as well as ensuring that all the requirements as specified under the settlement agreement is fulfilled. Beyond these settlement requirements, the monitor possesses no authority on the kinds of consumer reliefs to be provided by the financial institutions or the consumers who receive the relief.
The monitoring rules are not designed to ensure that the clients get relief for $4.5 billion. Citi gives this payment s on a voluntary basis and it is not obligated by any person to give relief. All the procedures are carried out through various government organizations and the banking institutions. The monitor has to operate in a transparent manner and all the operations must be clearly understood by all people.
Also, quarterly reports that reflect the progress made toward fulfilling the obligations will also be provided by the regulator. Under the Settlement Agreement, there is an independent monitor appointed to oversee the fulfillment of the agreements. The responsibility is to ensure that all obligations in the provision of the $2.5 billion consumer relief is undertaken.
On the other hand, in the event that the overseer determines that the financial institution fails to fully undertake the agreement by December 2018, Citi will be obliged to pay the difference through paying the equivalent amount to the Neighbor Works America. The Neighbor Works America is a non-profit organization that undertakes services such as counseling on housing, neighborhood stabilization services, as well as foreclosure prevention services and so on.
In order to make the monitorship rigorous and independent, the process is expected to be open and transparent in order to also foster the confidence of the public in the roles of the oversight role. The oversight is also to provide periodical reports in order for parties involved to give their own assessments.
Overall, it is expected that the monitor also corresponds and makes communications with the public and this is generally by providing regular updates as pertains to compliance by Citi to the specifics contained in the agreement for claims settlement. This will be basically done through websites, meetings for interested parties and through the release of regular reports on the progress made. As a matter of fact, many homeowners will ultimately benefit from this agreement.
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The seventh report on Citigroup monitor is available for download now. To get immediate access to the website, go here http://www.citigroupmonitorship.com.
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