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.
Ideally, the relief is to take various forms. The forms include loan modifications for underwater homeowners, financing of affordable rental housing for low-income persons residing in high-cost places, as well as refinancing for homeowners. Other forms are such as down payment and closing assistance when the clients are refinancing as well as support towards reinvestments in the community and donations to organizations for community aid.
The monitor has a specified role that it undertakes. To begin with, it ensures that Citigroup fulfills its obligation to offers a relief of $2.5 billion to its clients. The oversight role essentially entails progress tracking, informing the public as well as ensuring that all the requirements as specified under the settlement agreement is fulfilled. Beyond these settlement requirements, the monitor possesses no authority on the kinds of consumer reliefs to be provided by the financial institutions or the consumers who receive the relief.
At the same time, it should not engage in overseeing the obligation to effect the $4.5 billion cash payments. This will instead be handled between the respective government entities that are to receive the amount and Citi. The monitors are, nonetheless, expected to incorporate transparency and disclose all the details pertaining to their roles.
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.
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.
The oversight committee is only allowed to conduct its operations in a way that is fully transparent. Transparency gives the public more confidence in the firm and all its operations. It also conducts assessments in a rigorous way and releases reports that must be accessed by all the clients.
Overall, the monitor is expected to correspond to the public through the provision of regular updates on the compliance of Citi with specifics in the Settlement Agreement. This is through the website, meetings with any interested parties as well as the provision of reports. Basically, a number of homeowners are ultimately set to benefit greatly from this agreement.
Ideally, the relief is to take various forms. The forms include loan modifications for underwater homeowners, financing of affordable rental housing for low-income persons residing in high-cost places, as well as refinancing for homeowners. Other forms are such as down payment and closing assistance when the clients are refinancing as well as support towards reinvestments in the community and donations to organizations for community aid.
The monitor has a specified role that it undertakes. To begin with, it ensures that Citigroup fulfills its obligation to offers a relief of $2.5 billion to its clients. The oversight role essentially entails progress tracking, informing the public as well as ensuring that all the requirements as specified under the settlement agreement is fulfilled. Beyond these settlement requirements, the monitor possesses no authority on the kinds of consumer reliefs to be provided by the financial institutions or the consumers who receive the relief.
At the same time, it should not engage in overseeing the obligation to effect the $4.5 billion cash payments. This will instead be handled between the respective government entities that are to receive the amount and Citi. The monitors are, nonetheless, expected to incorporate transparency and disclose all the details pertaining to their roles.
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.
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.
The oversight committee is only allowed to conduct its operations in a way that is fully transparent. Transparency gives the public more confidence in the firm and all its operations. It also conducts assessments in a rigorous way and releases reports that must be accessed by all the clients.
Overall, the monitor is expected to correspond to the public through the provision of regular updates on the compliance of Citi with specifics in the Settlement Agreement. This is through the website, meetings with any interested parties as well as the provision of reports. Basically, a number of homeowners are ultimately set to benefit greatly 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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