WASHINGTON—Two mortgage servicing units of Citigroup Inc. agreed to pay $28.8 million to settle allegations from the Consumer Financial Protection Bureau that they mistreated borrowers seeking foreclosure relief. The federal watchdog agency alleged Monday that CitiFinancial Servicing and CitiMortgage Inc. gave struggling homeowners the “runaround”, including keeping borrowers in the dark about options to avoid foreclosure or burdening them with excessive paperwork demands when applying for foreclosure relief. ...
Citigroup mortgage units have been fined $28.8m for failing to disclose options to home borrowers to avoid foreclosure and for making it difficult for them to apply for relief, the Consumer Financial Protection Bureau (CFPB) said on Monday. The CFPB also announced that Bank of America Merrill Lynch will pay a record $1.2bn fine over its role in helping customers with bad mortgages get into trouble.