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 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.
On the other hand, it will not also engage in oversight roles for the obligation by Citi to give the cash payments worth $4.5 billion. This is generally handled directly between the government entities receiving the cash and the financial institution. The operations of the monitor are however expected to be transparent and reveal every details to the public.
In addition, quarterly reports reflecting on the progress in fulfilling the requirements should also be offered by the overseer. Under this Settlement Agreement, independent monitors are to oversee that these agreements is fulfilled. Their responsibility is ascertaining that every obligations as outlined in the agreement for the consumer relief comes to a fulfillment.
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 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 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.
On the other hand, it will not also engage in oversight roles for the obligation by Citi to give the cash payments worth $4.5 billion. This is generally handled directly between the government entities receiving the cash and the financial institution. The operations of the monitor are however expected to be transparent and reveal every details to the public.
In addition, quarterly reports reflecting on the progress in fulfilling the requirements should also be offered by the overseer. Under this Settlement Agreement, independent monitors are to oversee that these agreements is fulfilled. Their responsibility is ascertaining that every obligations as outlined in the agreement for the consumer relief comes to a fulfillment.
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 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.
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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