Arizona, D.C. – The consumer Financial Protection Agency (CFPB) today got independent actions facing CitiFinancial Upkeep and you may CitiMortgage, Inc. getting giving the runaround to stressed home owners seeking to choices to save your self their homes. The loan servicers leftover individuals at nighttime from the options to prevent property foreclosure or burdened these with a lot of paperwork needs when you look at the using getting property foreclosure save. This new CFPB is actually demanding CitiMortgage to pay an estimated $17 mil to pay wronged customers, and you may spend a civil penalty off $3 mil; and you will requiring CitiFinancial Attributes to help you reimburse approximately $4.4 million so you can customers, and you can shell out a municipal penalty away from $cuatro.4 billion.
“Citi’s subsidiaries gave the runaround so you can individuals who were currently battling with the mortgage payments and you will trying rescue their homes,” told you CFPB Manager Richard Cordray. “Customers was kept in the fresh new black regarding their options otherwise burdened with extreme papers. This step often lay cash back from inside the consumers’ pouches and make sure individuals can get let they require.”
CitiFinancial Maintenance consists of five entities included into the Delaware, Minnesota, and you may Western Virginia, and you can based when you look at the O’Fallon, Mo. Are direct subsidiaries of CitiFinancial Borrowing from the bank Company, and you can an indirect subsidiary of the latest York-based Citigroup, Inc. Because a mortgage servicer, CitiFinancial Maintenance collects payments regarding borrowers having money they develop. In addition it handles customer service, selections, financing modifications, and property foreclosure. (more…)