home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Predatory Lending News
FTC and HUD settlements. Class action lawsuits. Predatory lending prevention. Archives back to 2001.

Citigroup May Settle Predatory Case For $200 Million

Settlement amount would be a record

September 6, 2002

By MortgageDaily.com staff

Citigroup, Inc. may settle predatory lending allegations with the Federal Trade Commission. Such a settlement would be a record.

According to an article in the Wall Street Journal, the company is close to an agreement with the Federal Trade Commission (FTC) to pay about $200 million to settle allegations of predatory lending. While the discussions could still fall apart, such a consumer-protection settlement would be the largest with the FTC and the largest amount ever paid in a predatory-lending case, according to the Journal.

The allegations stem from Citigroup's 2000 purchase of Associates First Capital Corp., a Dallas-based finance company that has been integrated into CitiFinancial. The proposed FTC settlement would end a suit filed by the FTC in March 2001 against Associates for alleged deceptive marketing practices, the Journal said.

Citigroup is currently under investigation by New York authorities for its role in Enron's concealment of debt, inappropriate initial public offering allocations and conflicts of interest with its stock analysts.

In July, Mercantile Mortgage Company, Inc. of Westerville, Ohio settled predatory charges with the FTC for $250,000. In that case, Mercantile -- which is a wholesale lender -- was held liable for the predatory actions of one of its mortgage brokers.

In March, First Alliance Mortgage Company and its chief executive officer, Brian Chisick, settled a predatory lending case with the FTC for $20 million.

About a year ago, Citigroup agreed to pay as much as $20 million in refunds to around 9,000 borrowers to settle an investigation by the North Carolina attorney general. That case dealt with alleged deceptive practices at Associates.

While Citigroup's acquisition of Associates provided added net income, it has also led the banking behemoth to take steps to clean up the image inherited with the purchase. These steps included suspending a number of mortgage brokers and abandoning single premium life insurance sales.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders