Mortgage Settlement for Citigroup

Citigroup Inc. is providing $7 billion in consumer relief and cash to settle state and federal investigations into the sale of bad mortgages during the housing boom. Many states, including California, will share in the settlement.

The Citigroup mortgage settlement will have a record $4 billion payout in civil fines, and $500 million in repayments for public pension funds and other losses. There will also be $2.5 billion in consumer relief. California will receive $102.7 million to help offset the losses in the public pension funds, and is also guaranteed $90 million in consumer relief, which is more than any other state.

The Citigroup agreement is coming after many other settlements by Wall Street firms, including JP Morgan Chase and Bank of America, which all packaged high-risk loans during the housing boom. The JP Morgan Chase settlement, which was announced in November, was the largest of the settlements, at $13 billion. However, the federal civil penalty for Citigroup is double what JPMorgan Chase paid.

For all of your home lending needs in the Irvine, California area, contact Avis Lending.

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