Citigroup 'may refile foreclosures'

18 November 2010

American financial giant Citigroup has informed US lawmakers that thousands of foreclosure cases may need to be resubmitted over the next few months.

Speaking at a congressional hearing today (November 18th 2010), CitiMortgage managing director Harold Lewis said that as many as 10,000 affidavits executed prior to reform of its foreclosure methods are currently under review.

"As the housing crisis has worsened, we have devoted considerable resources to helping our customers," he explained. "Citi expects that affidavits executed prior to the fall of 2009 will need to be refiled."

Mr Lewis insisted that Citi is sympathetic towards the challenges facing American families in the wake of the financial downturn and said its "first priority" is to help homeowners avoid reaching the point of foreclosure if possible.

His comments came after the Federal Reserve warned that banks which submit inadequate documentation could face hefty fines or criminal punishment, with attorneys in all 50 states currently investigating the matter.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development