Citibank has had a large number of mortgage-backed securities claims against it dismissed by a New York judge, who found a majority of the loans were not covered by federal law. Citibank is accused of mishandling mortgage-backed securities in over $17bn worth of pooled loans. The lawsuit was filed on behalf of investors and mortgage holders from across the country that bought mortgages with money borrowed through Citi Mortgage. M. Furman refused to completely dismiss the suit, rejecting Citibank's argument that the shareholders were unable to prove that the bank actually knew that any of the loan sellers had misrepresented the loans.
Citibank has had a large number of mortgage-backed securities claims against it dismissed by a New York judge, who found a majority of the loans were not covered by federal law. Citibank is accused of mishandling mortgage-backed securities in over $17bn worth of pooled loans. However, Judge Jesse. M. Furman refused to completely dismiss the suit, rejecting Citibank's argument that the shareholders were unable to prove that the bank actually knew that any of the loan sellers had misrepresented the loans.