citimortgage pays fannie mae to take ...

citimortgage pays fannie mae to take foreclosure rights

Posted in the Columbia Forum

Shed liability

Wilson, NC

#1 Jan 20, 2014
CITI PAYS FANNIE TO TAKE FORECLOSURE RIGHTS ON LOANS ALREADY OWNED BY FANNIE MAE

Effort marks Citi's move to shed potential liability over foreclosure practices

Regulatory requirements have made it difficult for CitiMortgage to foreclose on and service the FANNIE MAE OWNED LOANS.

Citigroup PAID Fannie Mae to limit its liability related to the Foreclosure servicing. The deal “substantially resolved pending and future compensatory fee claims related to Citi’s Foreclosure practices on these loans. Compensatory fees typically refer additional fees Fannie Mae may choose to levy on CitiMortgage when certain set standards are not met.

Compensatory fees can be assessed for delays in the Foreclosure process, late filing of a final request for reimbursement, and other foreclosure and timeline-related matters.

CITIMORTGAGE NO LONGER HAS FORECLOSURE RIGHTS

CITI sells the rights to foreclose on behalf of Fannie Mae, about 64,000 defaulted mortgages

Citi agreed to sell foreclosure rights "collection rights" and the right to foreclosure on about 64,000 Fannie Mae owned residential first-mortgage loans and sold the foreclosure rights back to Fannie Mae The loans had an unpaid principal balance of about $10.3 billion. The unusual transaction was announced, with Citi reaching a definitive agreement with Fannie Mae. The sale includes delinquent loans serviced by CitiMortgage for Fannie Mae. Nearly all of the loans transfered are in foreclosure or are delinquent.

Compensatory fees can be assessed for delays in the Foreclosure process, late filing of a final request for reimbursement, and other foreclosure and timeline-related matters.

The job losses include 200 in Fort Mill, South Carolina, and about 50 in Hagerstown, Maryland, CitiMortgage is shuttering its Foreclosure default-servicing operations in those two locations, the CitiMortgage servicing unit was responsible for foreclosures.

CITI shutters foreclosure default mortgage service unit near Fort Mill, S.C

Fannie Mae — which is short for the Federal National Mortgage Association — is a government-controlled company that helps provide money for the U.S. housing market by buying residential mortgages and packaging pools of those loans for sale to investors, according to The Associated Press
Foreclosure

Deep Run, NC

#8 Feb 11, 2014
Foreclosures

Citi has signed a “definitive agreement for the sale of Mortgage-Servicing and Foreclosure Rights for approximately 64,000 Fannie Mae residential first mortgage loans. The Mortgage-Servicing and Foreclosure Rights primarily reside in Citi Holdings, and are tied to Fannie Mae loans with outstanding unpaid principal balances of approximately $10.3 billion.”
Citi administers, forecloses, and services loans for several investors, including Fannie Mae. As a result of the defaulted Fannie Mae loans
“The sale includes the majority of the delinquent loans serviced by CitiMortgage for Fannie Mae, and it represents nearly 20 percent of the total loans serviced by CitiMortgage that are 60 days or more past due,”
Citi and Fannie Mae substantially resolved pending and future compensatory fee claims related to Citi’s servicing and foreclosure practices on these loans. Citi will continue to explore opportunities to further reduce Citi Holdings assets. The transfer of servicing will begin immediately.

Read more: http://www.therecordherald.com/article/201401...
ForeclosureFraud

Deep Run, NC

#9 Feb 11, 2014
Fannie Mae has purchased mortgage servicing rights on about 64,000 of its own loans from Citigroup (C), looks to shed future liabilities tied to its foreclosure servicing practices.

The unusual transaction, with the bank saying it had reached a definitive agreement with the GSE to sell servicing rights tied to approximately $10.3 billion of unpaid principal balances on mortgages owned by the GSE Fannie Mae.

“The sale includes the majority of the delinquent loans serviced by CitiMortgage for Fannie Mae, and it represents nearly 20% of the total loans serviced by CitiMortgage that are 60 days or more past due,” Nearly all of the loans transfered are delinquent or in foreclosure.

The agreement means that Citi and Fannie Mae have “substantially resolved pending and future compensatory fee claims related to Citi’s foreclosure servicing practices on these loans,”

The so-called compensatory fees typically refer to the fees paid to foreclosure attorneys and associated vendors during the foreclosure process.

In 2013, the issue of possible fee padding involving compensatory fees came to the forefront, leading to a number of investigations at leading banks including MetLife, Inc.(MET) and PNC Financial Services Group (PNC).

And, apparently, also at Citigroup, too.

As HousingWire reported last August, the investigations disclosed at other banks involved the U.S. Attorney’s Office and the U.S. Department of Justice, as well. It’s unclear if similar investigations are underway at Citi, or if the agreement to put servicing of Fannie Mae’s delinquent loans back with the GSE would resolve any other possibly ongoing investigations.

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