“We continuously review our document handling procedures, and we believe the integrity of Citi’s foreclosure process is sound,” said Citigroup chief financial officer John Gerspach on today’s third-quarter conference call. In other words, no foreclosure document fiasco to see here folks, at least according to Citigroup.
Amid a rapid increase in attention to potentially fraudulent foreclosure documents, Citigroup doesn’t appear nearly as concerned as some of its big-bank brethren. Bank of America has suspended foreclosures in all 50 states to make sure its filings are in order, and JPMorgan Chase has instituted a 23-state moratorium to review 115,000 foreclosure filings. Citi hasn’t stopped foreclosures in a single state.
Citi says that’s because its foreclosure review process actually follows the rules. Although outside attorneys prepare the documents, an actual Citi employee reviews each document set and properly notarizes it. After a review, Citi has “not identified any systemic issues,” Gerspach said.
Ally’s GMAC, Goldman Sachs and PNC are among the other big players who have altered their foreclosure practices as reports emerged that so-called “robosigners” were illegally preparing foreclosure affidavits.
Citigroup set aside $322 million in reserves against the possibility of having to buy back faulty mortgage securities. It had put aside $347 million for the same purpose in the second quarter.
mtaylor [at] observer.com | @mbrookstaylor