Lawmaker Calls for Further Examination of Servicers in 2013 Foreclosure Settlement

first_img Tagged with: 2013 Independent Foreclosure Review Citigroup Settlements Sign up for DS News Daily Lawmaker Calls for Further Examination of Servicers in 2013 Foreclosure Settlement About Author: Brian Honea March 20, 2015 1,001 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago 2013 Independent Foreclosure Review Citigroup Settlements 2015-03-20 Brian Honea U.S. Representative Maxine Waters (D-California) has written a letter to the inspectors general for both the Federal Reserve and the U.S. Department of Treasury asking for further investigation to determine if any of a group of mortgage servicers missed paying additional borrowers that were owed compensation as part of a 2013 foreclosure settlement.The letter was prompted by news reports that surfaced earlier this month stating that Citigroup, one of the servicers named in the settlement, had missed paying some 24,000 borrowers who were owed money from the settlement. Waters, the Ranking Member of the House Committee on Financial Services, sent her letter on Friday to Fed Inspector General Mark Bialek and Treasury Inspector General Eric Thorson asking them to perform further examinations to see if other borrowers were missed. The original settlement was reached more than two years ago between 15 mortgage servicers and the Fed and Office of the Comptroller of the Currency (OCC) to resolve claims of servicing violations during foreclosures.Those 24,000 Citigroup borrowers will receive a combined total of approximately $20 million with payments ranging from a few hundred dollars to $62,500 depending on the harm done to the borrower and the type of servicing error that was committed. One news report, citing an OCC spokesperson, stated that Citigroup was originally told by the OCC that it did not have to include those 24,000 borrowers in the settlement. It was discovered that Citigroup owed those 24,000 borrowers money only after one borrower filed a complaint on an OCC Customer Assistance website, which was stated in Waters’ letter and confirmed by the OCC.”As we said in the past, we are fully committed to fulfilling our obligations under the independent foreclosure review,” Citigroup spokesperson Lynn Fogarty said.Earlier this month when it was reported that 24,000 borrowers were still owed money by Citigroup, spokesman Mark Rodgers told DS News that “We want to make sure that everyone eligible for compensation under the agreement receives what they are due.”An Independent Foreclosure Review concluded in January 2013 with 10 mortgage servicers reaching an agreement with the Fed and the OCC to pay a combined total of $8.5 billion to more than 3.8 million homeowners whose homes were in foreclosure in 2009 and 2010. The claims allege that the servicers mishandled loan paperwork and robo-signed documents related to the foreclosures.The settlement totals were later increased to 15 servicers and a total of $10 billion in payments, according to the Fed. Citigroup has made cash payments of about $300 million to more than 350,000 borrowers and spent about $500 million on foreclosure prevention, according to an OCC report. Related Articles Share Save Home / Daily Dose / Lawmaker Calls for Further Examination of Servicers in 2013 Foreclosure Settlement Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Foreclosure, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Report: Freddie Mac to Sell $1 Billion Worth of Non-Performing Mortgage Loans Next: Judge Tosses Non-Profit’s Lawsuit Against DOJ Over JPMorgan Chase Settlement The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribelast_img read more


May 31, 2021 0