All About The Citigroup Monitor

By Cynthia Murphy


One may know about Citi as one of the biggest American investment banks that provide various financial services to various customers across different sectors. While most people know this side of Citigroup, what most are not that are of would be an alleged case they had back in July 2014. Due to this case, they were assigned a citigroup monitor called Citimonitorship to check on them as per the settlement agreement of the case.

Now, the case involved Citi selling defective mortgage loan packages just right before the big financial crisis that happened some time during 2008. In 2014, the case was eventually settled and the federal government demanded that the company pay a consumer relief amounting up to $2 billion to those who bought or were affected by the loans. They will give refinancing, homeowner assistance, cash compensation or loan modification.

When the case was settled, a formal settlement agreement was made with one of the conditions being that they are monitored by a third party. The main job of Citimonitorship is to simply make sure that Citi pays the consumer relief regularly while giving the public updates. Since this party has no bias, they can objectively be transparent with all the data that they are showing.

To be a little more specific, the monitors are tasked to monitor the progress of the payments of Citi with regard to the consumer relief based on the Settlement Agreement. In accordance with this, several reports are provided quarterly to show to the public the progress of Citi. The first report was released some time during the early part of 2015.

Just to give a little background of the team, the team is headed by Thomas Perrelli, partner of Jenner and Block LLP. Also from Jenner and Block LLP are partners Jessica Hertz, Peter Pope, Emily Loeb, and Joseph Noga. Their job is to work together in monitoring the progress of Citi when it comes to paying the consumer relief so that everything is transparent.

Now, the great thing about a check and balance effort such as this is that people who believe that they are eligible to benefit from this program will be able to have access to the necessary information that they need in order to avail of the relief. In order to do that, they will have to work together with Citimonitorship on how to go about with Citi. However, one thing to consider would be the fact that Citi is not required to give a fixed amount of relief that one can be able to get.

In order to determine those who are eligible, Citi will follow the settlement agreement as its framework. They will also base the amount on their own records of credit and loan criteria that they provided. They then have the choice to choose how they will settle the amount based on the outline given in the agreement.

So for those who want to know more about the consumer relief with regard to this case, take note of these things. The great thing about Citimonitorship is that they ensure all consumer relief cases are answered. This is great for those who were affected by the mortgage loans.




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