According to a report from Bloomberg, Citigroup (C) did not send settlement checks to approximately 23,000 borrowers who are eligible for payment under the Independent Foreclosure Review.
Citing “two people close to the matter,” Bloomberg reports that the bank is preparing to send out settlement checks to the affected borrowers, to the tune of $20 million total.
Agreements reached in January 2013 between federal bank regulatory agencies and 13 mortgage servicers provided $3.6 billion in cash payments to borrowers whose homes were in any stage of the foreclosure process in 2009 or 2010.
The mortgages were serviced by one of the following 13 companies, their affiliates, or subsidiaries: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.
But Citibank has apparently not fulfilled its obligations. From the Bloomberg report:
Citigroup’s missed borrower payments were discovered by regulators, said the people, who asked not to be named because they weren’t authorized to speak publicly. The neglected customers amounted to 6 percent of the roughly 380,000 people the bank owed money. An OCC report released last year showed Citigroup had made cash payments of $300 million, while spending an additional $500 million on foreclosure-prevention efforts.