Generally, claims have been raised by a number of states and the federal government on Citigroup packaging, marketing and selling shoddy residential mortgage loans before the financial crisis. As a result, a resolution was made and a Settlement Agreement reached that obligates Citigroup to reimburse $4.5 billion in cash payments and $2.5 billion of consumer relief. The settlement of this consumer relief is, however, to be supervised by a citigroup monitor.
The consumer relief is expected to take different forms. These are such as loan modifications to underwater homeowners, the refinancing for homeowners, the financing of rental housing that is affordable for families who are low-income earners but live in high-cost areas. Other forms include down payment as well as closing assistance in the event of refinancing and finally support towards community reinvestment and the provision of donations to organizations that aid communities in similar redevelopments.
The task undertook by the monitor is very critical. The first role is making sure that Citigroup pays clients the $2.5 billion that has to be paid each year. The role played is essential when you want to check progress, passing information to the public and ensuring that the settlement agreement is strictly followed when giving clients relief. The monitoring authority, however, lacks the power of determining the clients who are legible to receive compensation.
At the same time, it should not engage in overseeing the obligation to effect the $4.5 billion cash payments. This will instead be handled between the respective government entities that are to receive the amount and Citi. The monitors are, nonetheless, expected to incorporate transparency and disclose all the details pertaining to their roles.
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.
If Citi rules that the company has not paid the clients in due time before 2018 it will have failed on its obligations. The company is supposed to pay the full amount to another firm known as Neighbor Works which has its operations across America. This firm is an NGO that does not make any profits from its job. Its work is to give counseling services on housing issue and how neighborhoods can be stabilized.
In ensuring that the monitorship is independent and rigorous, openness and transparency is expected from the overseer. This is in order to foster confidence in the public on the roles performed by the overseer. Periodic reports are to be provided so that the parties involved can give their assessments.
Overall, the monitor is expected to correspond to the public through the provision of regular updates on the compliance of Citi with specifics in the Settlement Agreement. This is through the website, meetings with any interested parties as well as the provision of reports. Basically, a number of homeowners are ultimately set to benefit greatly from this agreement.
The consumer relief is expected to take different forms. These are such as loan modifications to underwater homeowners, the refinancing for homeowners, the financing of rental housing that is affordable for families who are low-income earners but live in high-cost areas. Other forms include down payment as well as closing assistance in the event of refinancing and finally support towards community reinvestment and the provision of donations to organizations that aid communities in similar redevelopments.
The task undertook by the monitor is very critical. The first role is making sure that Citigroup pays clients the $2.5 billion that has to be paid each year. The role played is essential when you want to check progress, passing information to the public and ensuring that the settlement agreement is strictly followed when giving clients relief. The monitoring authority, however, lacks the power of determining the clients who are legible to receive compensation.
At the same time, it should not engage in overseeing the obligation to effect the $4.5 billion cash payments. This will instead be handled between the respective government entities that are to receive the amount and Citi. The monitors are, nonetheless, expected to incorporate transparency and disclose all the details pertaining to their roles.
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.
If Citi rules that the company has not paid the clients in due time before 2018 it will have failed on its obligations. The company is supposed to pay the full amount to another firm known as Neighbor Works which has its operations across America. This firm is an NGO that does not make any profits from its job. Its work is to give counseling services on housing issue and how neighborhoods can be stabilized.
In ensuring that the monitorship is independent and rigorous, openness and transparency is expected from the overseer. This is in order to foster confidence in the public on the roles performed by the overseer. Periodic reports are to be provided so that the parties involved can give their assessments.
Overall, the monitor is expected to correspond to the public through the provision of regular updates on the compliance of Citi with specifics in the Settlement Agreement. This is through the website, meetings with any interested parties as well as the provision of reports. Basically, a number of homeowners are ultimately set to benefit greatly from this agreement.
About the Author:
The seventh report on Citigroup monitor is available for download now. To get immediate access to the website, go here http://www.citigroupmonitorship.com.