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.
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 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.
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.
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.
On the other hand, in the event that the overseer determines that the financial institution fails to fully undertake the agreement by December 2018, Citi will be obliged to pay the difference through paying the equivalent amount to the Neighbor Works America. The Neighbor Works America is a non-profit organization that undertakes services such as counseling on housing, neighborhood stabilization services, as well as foreclosure prevention services and so on.
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.
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 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.
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.
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.
On the other hand, in the event that the overseer determines that the financial institution fails to fully undertake the agreement by December 2018, Citi will be obliged to pay the difference through paying the equivalent amount to the Neighbor Works America. The Neighbor Works America is a non-profit organization that undertakes services such as counseling on housing, neighborhood stabilization services, as well as foreclosure prevention services and so on.
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.
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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