1,000,000 + Attorneys and Legal Staff - Legal employers hire more people on LawCrossing than any other site.
Bank of America to Pay $17 Billion for Its Role in Housing Bubble Burst
Bank of America to Pay $17 Billion for Its Role in Housing Bubble Burs...
False Copyright Infringement Leads to Threatening Letter from Getty Images
False Copyright Infringement Leads to Threatening Letter from Getty Im...
$62.5 Million Settlement Approved in Case Against Wells Fargo
$62.5 Million Settlement Approved in Case Against Wells Fargo
Rosen Law Firm PA Investigating Possible Fraud on Part of SeaWorld
Rosen Law Firm PA Investigating Possible Fraud on Part of SeaWorld
Job Listings

Citigroup Changing Home Equity Lending Practices as Part of Settlement

facebooktwittergoogle_plusredditpinterestlinkedinmail

On Friday, Citigroup filed papers with the U.S. District Court in San Francisco over a settlement to a nationwide litigation on behalf of thousands of borrowers who took HELOCs or home equity lines of credit from the bank. According to the papers filed by Citigroup, the bank would give borrowers a chance to reinstate their accounts if their HELOCs were suspended or cut because of a significant drop in values of homes.

According to the proposal, the bank would change its lending practices and would also expand disclosures in notices. Borrowers who closed a HELOC after receiving a reduction or closure notice from the bank, and incurred an early closure fee, would have an option to receive a $120 cash payment from the bank.

The proposal for settlement needs court approval and includes borrowers whose HELOC accounts were suspended or reduced between January 1, 2008 and January 31, 2012. Citi spokesman Mark Rodgers said, “Citi is pleased to have this matter resolved.”

The lawsuit claimed that Citigroup had started suspending or reducing HELOC of borrowers upon alleged drops in values of their homes, when such was often not the case. The plaintiffs claimed that the notices of suspension and reduction of HELOC were simply a “thinly-veiled, unlawful attempt to limit its exposure to the risk of collapse in the United States housing market ad to rid itself of below-market interest rate loans.”

The law firm representing the plaintiffs is apparently seeking as much as $1.21 million to cover legal fees and expenses. The settlement is the latest in a series of such settlements made by the bank in relation with its questionable housing practices. On Wednesday the Citigroup had announce another settlement amounting to $590 million to stop probes into its practices of hiding toxic mortgage assets from investors.

What

 job title, keywords

Where

 city, state, zip



Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!


The case is Citibank HELOC Reduction Litigation, U.S. District Court, Northern District of California, No. 09-00350.

Citigroup Changing Home Equity Lending Practices as Part of Settlement by

facebooktwittergoogle_plusredditpinterestlinkedinmail

Tagged:

Posted by on September 1, 2012. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

Job of the Day
Real Estate Associate
USA-TX-Dallas

Our client is a north Dallas law firm who seeks a Real Estate Development Associate.  The ideal candidate will have 2-4 years law firm experience concentrated in representing real estate develope...