WASHINGTON (Legal Newsline) —The Consumer Financial Protection Bureau (CFPB) announced Jan. 23 that it took separate actions against CitiFinancial Servicing and CitiMortgage Inc. for business practices involving struggling homeowners seeking options to save their homes.
“Citi’s subsidiaries gave the runaround to borrowers who were already struggling with their mortgage payments and trying to save their homes,” said CFPB Director Richard Cordray. “Consumers were kept in the dark about their options or burdened with excessive paperwork. This action will put money back in consumers’ pockets and make sure borrowers can get help they need.”
According to allegations, CitiFinancial Servicing violated the Real Estate Settlement Procedures Act, the Fair Credit Reporting Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act’s prohibition on deceptive acts or practices. The company purportedly failed to disclose foreclosure relief options, duped consumers about deferring payment dates and charged consumers for insurance that should have been canceled. CitiFinancial Servicing must fix its business practices and pay $4.4 million in consumer restitution.
CitiMortgage allegedly violated the Real Estate Settlement Procedures Act, and the Dodd-Frank Act’s prohibition against deceptive acts or practices. The company must pay $17 million to wronged consumers and clean up its business practices.