Generally, claims have been raised by a number of states and the federal government on Citigroup packaging, marketing and selling shoddy residential mortgage loans before the financial crisis. As a result, a resolution was made and a Settlement Agreement reached that obligates Citigroup to reimburse $4.5 billion in cash payments and $2.5 billion of consumer relief. The settlement of this consumer relief is, however, to be supervised by a 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 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.
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 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 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.
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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