Before the financial crisis, Citigroup was reported and it was being monitored closely by the federal government and five states. The company has been put on watch for dealing in sub standard residential mortgages. The problem got a reprieve when the firm was given an order to compensate $4.5 billion and $2.5 which was to go to the consumers. The consumers will be paid the money and the process will be closely watched by 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 monitor is to undertake various specified roles. First, it will ensure that the financial institution fulfills its obligations and settles the $2.5 billion consumer relief. The oversight role basically involves progress tracking, public awareness and ascertaining that every requirement is fulfilled as outlined in the settlement agreement. Outside the settlement requirements, this monitorship program has no obligatory role on the forms of consumer reliefs provided as well as consumers entitled to receiving the relief.
The monitoring rules are not designed to ensure that the clients get relief for $4.5 billion. Citi gives this payment s on a voluntary basis and it is not obligated by any person to give relief. All the procedures are carried out through various government organizations and the banking institutions. The monitor has to operate in a transparent manner and all the operations must be clearly understood by all people.
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.
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 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.
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 monitor is to undertake various specified roles. First, it will ensure that the financial institution fulfills its obligations and settles the $2.5 billion consumer relief. The oversight role basically involves progress tracking, public awareness and ascertaining that every requirement is fulfilled as outlined in the settlement agreement. Outside the settlement requirements, this monitorship program has no obligatory role on the forms of consumer reliefs provided as well as consumers entitled to receiving the relief.
The monitoring rules are not designed to ensure that the clients get relief for $4.5 billion. Citi gives this payment s on a voluntary basis and it is not obligated by any person to give relief. All the procedures are carried out through various government organizations and the banking institutions. The monitor has to operate in a transparent manner and all the operations must be clearly understood by all people.
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.
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 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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