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 relief will be disbursed in varying ways. The forms include loan adjustments for homeowners, refinancing mortgages, helping people access affordable houses for their families. The home acquiring methods used are ideal for people who want to buy homes in high-end areas but they do not have enough money. The other forms used include deposits, the other monies goes into funding community organizations that assist people in the community who do not have proper housing.
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.
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.
The regulator is obliged to show all the progress to the clients. The progress noticed must be geared towards achieving the goals. During the agreement, there must be a monitor who does not take sides to ensure that the agreement is honored by all the parties. It has to make sure that the $2.5 billion is given to clients.
However, should it be determined by the overseer that Citi fails to fulfill its obligations by the year 2018December, it is a requirement that the financial institution will settle the difference by paying this amount to Neighbor Works America. This is a nonprofit organization which provides counseling on housing, foreclosure prevention services, neighborhood stabilization among other programs.
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.
The oversight committee is the public eye and it has to update clients regularly how Citi is progressing and competing with others. It must also ensure that clients understand all the measures being undertaken for compliance purposes. Information can be accessed through the company website.
The relief will be disbursed in varying ways. The forms include loan adjustments for homeowners, refinancing mortgages, helping people access affordable houses for their families. The home acquiring methods used are ideal for people who want to buy homes in high-end areas but they do not have enough money. The other forms used include deposits, the other monies goes into funding community organizations that assist people in the community who do not have proper housing.
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.
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.
The regulator is obliged to show all the progress to the clients. The progress noticed must be geared towards achieving the goals. During the agreement, there must be a monitor who does not take sides to ensure that the agreement is honored by all the parties. It has to make sure that the $2.5 billion is given to clients.
However, should it be determined by the overseer that Citi fails to fulfill its obligations by the year 2018December, it is a requirement that the financial institution will settle the difference by paying this amount to Neighbor Works America. This is a nonprofit organization which provides counseling on housing, foreclosure prevention services, neighborhood stabilization among other programs.
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.
The oversight committee is the public eye and it has to update clients regularly how Citi is progressing and competing with others. It must also ensure that clients understand all the measures being undertaken for compliance purposes. Information can be accessed through the company website.
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.
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