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 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 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.
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 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 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.
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.
0 commentaires:
Enregistrer un commentaire