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Citigroup

The Big Four Layoff Trickle Down Theory

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We typically hear about the big four laying off workers by the thousands. It’s not unusual to see Wells Fargo kicking a bunch of the staffers of their mortgage department to the curb. JPMorgan? No big deal, they’ll just cut 13,000 jobs by 2015.Click to continue

FHFA Settlements Net $8 Billion for Taxpayers

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The Federal Housing Finance Agency (FHFA), as conservator of Fannie Mae and Freddie Mac, today announced it has recovered nearly $8 billion on behalf of taxpayers in 2013 through settlements with financial institutions that sold private-label securities (PLS) to Fannie Mae and Freddie Mac between 2005 and 2007. FHFA sued 18 financial institutions in 2011 alleging securities law violations, and in some cases, fraud.Click to continue

Nearly 2,200 on the Citigroup Chopping Block

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Citing the rise in mortgage rates, Citigroup has closed down an Illionois office, laying off around 120 in the process. The Danville, Ill. facility is said to be the beginning of a mass-wave of Citi firings, with numbers projected to total around 2,200 when the smoke clears.Click to continue

The High Cost of Profitable Quarters: Wells Fargo and Citi Announce Mortgage Division Layoffs

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Typically, when a company reports solid financial gains, that means that they aren’t doing badly, right? High revenue surely means that workers' jobs are safe, that business will continue, undaunted for at least another quarter.Click to continue

Citigroup Shells Out $968 Million to Fannie Mae for Faulty Loans

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Citigroup has announced an agreement with Fannie Mae to resolve potential future repurchase claims for breaches of representations and warranties on 3.7 million residential first mortgage loans sold to Fannie Mae that were originated between 2000 and 2012 (“Covered Loans”). Citi agreed to pay Fannie Mae $968 million under the agreement, substantially all of which was covered by Citi’s existing mortgage repurchase reserves as of March 31, 2013.Click to continue

How the Global Economy Will Impact U.S. Mortgages

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The housing market is arguably the sector by which the health of the U.S. economy is gauged; that it has been in the doldrums over the past several years is not in dispute, but it’s clear that there has been improvement in recent months and that the outlook is turning brighter. However, to understand why there is such optimism you have to first understand what drives U.S. mortgages. The three most important factors which control mortgage rate direction and subsequently housing demand are these; banking capital, interest rates, growth and confidence. Click to continue

Oklahoma Issues First Payouts to Victims in Nationwide Servicing Settlement

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Oklahoma Attorney General Scott Pruitt has issued the first mortgage compensation checks in the nation to Oklahoma families who were victims of unfair and deceptive practices by five national servicers following the financial crisis. Oklahoma was the only state to craft its own agreement with Bank of America, Citigroup, JP Morgan Chase, GMAC and Wells Fargo, which allowed the Attorney General’s Office to provide compensation up to 20 times more than the payments residents in other states are expected to receive under the federal settlement. More than 700 Oklahomans applied fClick to continue

Missouri AG to Use $38 Million From Servicing Settlement to Ease Budget Concerns

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Missouri Attorney General Chris Koster has announced that he has deposited $38 million into Missouri’s general revenue fund resulting from his efforts to conclude Missouri’s portion of the national mortgage settlement. The national mortgage settlement, which was announced in February, addresses allegations of foreclosure abuses, unfair mortgage servicing practices and fraud by the nation’s five largest mortgage servicers: Bank of America, CitigroClick to continue

Fed Releases Servicing Action Plans for Citigroup and HSBC

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The Federal Reserve Board (FRB) has released action plans for Citigroup and HSBC Finance Corporation to correct deficiencies in residential mortgage loan servicing and foreclosure processing. It also released the engagement letter between Ally Financial Inc.Click to continue

FINRA Fines Citigroup $3.5 Million for Inaccurate RMBS Data

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The Financial Industry Regulatory Authority (FINRA) has announced that it has fined Citigroup Global Markets Inc. $3.5 million for providing inaccurate mortgage performance information, supervisory failures and other violations in connection with sub-prime residential mortgage-backed securitizations (RMBS). Issuers of RMBS are required to disclose historical performance information for past securitizations that contain mortgage loans similar to those in the RMBS being offered to investors.Click to continue