Tuesday, January 31, 2017

Two Citibank Subs Agree To Fork Over $28.8 Million To Settle Allegations That They Jerked Around Foreclosure-Facing Homeowners Seeking To Save Their Homes By Keeping Them In The Dark As To Their Options, Burdening Them w/ Excessive Paperwork Demands

From the Consumer Financial Protection Bureau (Washington, D.C.):
  • The Consumer Financial Protection Bureau (CFPB) [] took separate actions against CitiFinancial Servicing and CitiMortgage, Inc. for giving the runaround to struggling homeowners seeking options to save their homes.

    The mortgage servicers kept borrowers in the dark about options to avoid foreclosure or burdened them with excessive paperwork demands in applying for foreclosure relief. The CFPB is requiring CitiMortgage to pay an estimated $17 million to compensate wronged consumers, and pay a civil penalty of $3 million [see consent order]; and requiring CitiFinancial Services to refund approximately $4.4 million to consumers, and pay a civil penalty of $4.4 million. [See consent order].

    “Citi’s subsidiaries gave the runaround to borrowers who were already struggling with their mortgage payments and trying to save their homes,” said CFPB Director Richard Cordray. “Consumers were kept in the dark about their options or burdened with excessive paperwork. This action will put money back in consumers’ pockets and make sure borrowers can get help they need.”
For more, see CFPB Orders Citi Subsidiaries to Pay $28.8 Million for Giving the Runaround to Borrowers Trying to Save Their Homes (Mortgage Servicers Kept Borrowers in the Dark About Options, Demanded Excessive Paperwork).