Home >> Daily Dose >> Monitor: Citi Makes Progress in Paying Settlement Debt
Print This Post Print This Post

Monitor: Citi Makes Progress in Paying Settlement Debt

numberone-moneyIndependent monitor Thomas J. Perrelli has credited Citi with another $208.6 million in consumer relief toward its $2.5 billion obligation under the terms of a July 2014 settlement with the U.S. Department of Justice and five states for selling toxic residential mortgage-backed securities to investors before the financial crisis.

The amount credited to Citi in the most recent report brings the total of consumer relief provided by the bank up to $897.7 million, putting it approximately a third of the way toward its obligation. The bank has until 2018 to pay the $2.5 billion in consumer relief it agreed to in the settlement.

The $208.6 million was provided in four different categories covering the third quarter of 2015 (July 1 through September 30, 2015). The relief was provided in 2,654 transactions across four categories: Rate reductions or refinancings, donations to community development organizations, donations to legal services organizations, and donations to HUD-approved counseling agencies. The majority of the transactions (2,561 of them) were in the rate reductions or refinance category.

Prior to Monday’s report, Perrelli had credited Citi with $689.1 million in consumer relief covering 15,800 transactions.

A Citi spokesperson declined to comment on the monitor’s report.

Citigroup settled with the DOJ and five states (California, New York, Illinois, Massachusetts, and Delaware) for a total of $7 billion in July 2014 amid claims that the bank misled investors as to the quality of mortgage-backed securities it sold. The portion of the penalty that went to the DOJ was $4 billion, which was the largest civil penalty to date under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). The report released Monday was Perrelli's fifth since the settlement was reached.

Click here to see Perrelli’s complete report released Thursday.

6-27 Citi graph

About Author: Brian Honea

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.

Check Also

Refis Spur Rise in Mortgage Apps

After a down week, mortgage application volume is on the rise, with sub-3% rates powering refi volume as more and more are taking advantage of record-low rates.

Subscribe to MDaily

MReport is here for you to stay on top of important developments in the mortgage marketplace. To begin receiving each day’s top news, market information, and breaking news updates, absolutely free of cost, simply enter your email address below.