The Consumer Financial Protection Bureau hit CitiFinancial Servicing andCitiMortgage with enforcement actions over how both companies handled borrower foreclosures.
CitiMortgage must pay an estimated $17 million to compensate wronged consumers, and pay a civil penalty of $3 million. CitiFinancial Services must pay approximately $4.4 million to consumers, and pay a civil penalty of $4.4 million. In total, both banks will pay $28.8 million.
A Connecticut woman flipped the script against CitiMortgage for attempting to foreclose on her home by taking the company to court this week for allegedly violating state and federal foreclosure laws.
The suit filed in U.S. District Court in New Haven seeks damages for so-called dual tracking of a distressed mortgage, which is barred by a 2014 modification to the Real Estate Settlement Procedures Act made by the Consumer Financial Protection Bureau. Dual tracking is when a lender pursues foreclosure during loss mitigation.
Nothing has changed from the banksters. Still submitting fraudulent documents in the county recorder offices. Check this out. This is an email that I received from Virginia of Deadly Clear website. Thanks Virginia!:
Another one to follow – thought you’d find interesting.
Begin forwarded message:
From: Tim Morell <firstname.lastname@example.org>
Date: August 21, 2014 9:08:58 AM HST
To: Tim Morell <email@example.com>
Subject: assignment of mortgage but not the note…
Here is a not your typical MERS type assignment of mortgage. This is a situation where Citimortgage originally was the holder of the note and filed suit for foreclosure in 2013. The borrower got a successful modification. He started the process with Citi, but Citi advised him that a new servicer would be taking over: FIC Lender Services LLC.
One thing led to another and the client received copies of assignments of the mortgage first from CIti to Ameriquest and then from Ameriquest to US Home Ownership LLC. (that one is below).
We then got a letter from US Home Ownership that included a contract where it stated that it was now our lender pursuant to this assignment. My client signed it and began making his payments.
Now… here’s the weird part… Citimortgage is proceeding on the original foreclosure. They say that they have the original note and are therefore entitled to enforce it…
LOUISVILLE – CitiMortgage foreclosed on homes across the country while the homebuyers “were protected from such actions by bankruptcy stays ordered by federal bankruptcy judges,” a woman claims in a federal class action.
And here is the complaint. H/T to Deadly Clear: