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Millions due from mortgage servicers after customers lied to

On Behalf of | Feb 2, 2017 | Foreclosure

Buying a home is an exciting and important milestone for many people in Tennessee. However, when money gets tight, the dream can sometimes turn into a nightmare as people struggle to make their mortgage payments. Finding a way to keep their home then becomes a top priority for many people who are burdened with large amounts of debt.

Often times, lenders outsource the servicing of mortgage loans to companies who when take on the responsibility of collecting payments from consumers. Two such companies, CitiMortgage, Inc. and CitiFinancial Servicing, have been fined by the Consumer Financial Protection Bureau for violating a number of laws, including the Dodd-Frank Act and the Real Estate Settlement Procedures Act.

CitiMortgage was charged with making customers submit excess paperwork in order to process applications for foreclosure relief. In fact, some of the documents requested had no bearing on the customers’ financial situations at all. The company now must pay $3 million in penalties and $17 million in compensation to its customers. CitiFinancial Servicing, Inc. was found to have incorrectly handled some people’s credit insurance, failed to inform customers about options for foreclosure relief and sent bad information to credit reporting agencies. It was fined $4.4 million and ordered to pay an additional $4.4 million to its customers.

Those who are facing foreclosure may feel overwhelmed and hopeless about their situation. However, options for relief may be available. People who are struggling financially and are behind on their mortgage payments may wish to contact an experienced attorney.

Source: Consumer Financial Protection Bureau, “CFPB Orders Citi Subsidiaries to Pay $28.9 Million for Giving the Runaround to Borrowers Trying to Save Their Homes,” Jan. 23, 2017


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