With these loans, the interest amount due is calculated on a day-to-day basis, unlike a typical mortgage, where interest is calculated monthly. It also handles customer service, collections, loan modifications, and foreclosures.ĬitiFinancial Servicing originates and services residential daily simple interest mortgage loans. As a mortgage servicer, CitiFinancial Servicing collects payments from borrowers for loans it originates. All are direct subsidiaries of CitiFinancial Credit Company, and an indirect subsidiary of New York-based Citigroup, Inc.
This action will put money back in consumers’ pockets and make sure borrowers can get help they need.” CitiFinancial ServicingĬitiFinancial Servicing is made up of four entities incorporated in Delaware, Minnesota, and West Virginia, and headquartered in O’Fallon, Mo. “Consumers were kept in the dark about their options or burdened with excessive paperwork. “Citi’s subsidiaries gave the runaround to borrowers who were already struggling with their mortgage payments and trying to save their homes,” said CFPB Director Richard Cordray. The CFPB is requiring CitiMortgage to pay an estimated $17 million to compensate wronged consumers, and pay a civil penalty of $3 million and requiring CitiFinancial Services to refund approximately $4.4 million to consumers, and pay a civil penalty of $4.4 million. The mortgage servicers kept borrowers in the dark about options to avoid foreclosure or burdened them with excessive paperwork demands in applying for foreclosure relief. for giving the runaround to struggling homeowners seeking options to save their homes. – The Consumer Financial Protection Bureau (CFPB) today took separate actions against CitiFinancial Servicing and CitiMortgage, Inc.
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