Published On: August 28, 2013

Citigroup to Pay Fannie Mae $968 Million and BofA to pay $10.35 Billion as a result of faulty mortgages.

The answer is “yes”

Citigroup said on July 1, 2013 that it had agreed to pay the mortgage finance giant Fannie Mae $968 million to resolve any claims on 3.7 million mortgage loans that might sour.  In January, Bank of America agreed to pay Fannie Mae about $3.6 billion to compensate for faulty mortgages and $6.75 billion to buy back mortgages that could have resulted in future losses for the government.  The bank also agreed to sell to other firms the right to collect payments on $306 billion worth of home loans.

Citigroup said the settlement would apply to troubled loans as well as any potential future claims on loans that originated between 2000 and 2012 that were purchased by Fannie Mae, which was bailed out by the government during the financial crisis.

Citigroup, like many other banks, sold off millions in mortgages to the government, which repackaged them into mortgage-backed securities. Many times, borrowers defaulted — sometimes within months of taking out a mortgage — causing huge losses for the taxpayer-supported Fannie Mae.

Click here to read the rest of the article…

We have several videos on our web site.  Below are a few that might be of interest:
  • “Lender’s Foreclosure Rights in Arizona”
  • “Should I keep my home or let it go into foreclosure?”
  • “Meet Ms. Drain and Suggestions on How to Hire an Attorney”

 

 

 

CLICK TO OUR WEBSITE

MUSINGS BY DIANE: “Mortgage companies, payday lenders, auto lenders and banks have decided that we are all deep pockets.  They seem to hatch schemes to take the hard earned money from anyone they can.  Those who are suspicious of the large institutions behavior are seen by those around them as “paranoid”.  Remember if someone is out to get you (or your money) you are not paranoid.  Never trust those who have financial incentive to mislead you.  Do your homework first.  Check them out on the Internet (great and powerful tool for everyone – con artists too).

You worked hard for your money, make it work for you, not for others.”

By |Published On: August 28th, 2013|Last Updated: May 29th, 2022|

Share this article

About the Author: Diane Drain

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau
5 / 5

“You folks are the BEST OF THE BEST in Arizona.” M.H.

You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.

5 / 5

“My only regret is that I didn’t find Diane sooner.” K.H.

I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.

5 / 5

“Filing for bankruptcy can be a stressful life event” R.A.

Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.

Related Posts

  • Published On: July 24, 2022

    Want to avoid dishonest debt collectors?  Watch this video from FTC’s Consumer Advice By Joseph Ferrari,July 22, 2022 (reprint from FTC, Consumer Alerts) During Military Consumer Month 2022, the FTC [...]

  • Published On: July 20, 2022

    BEWARE OF THE SECRET COSTS OF USING ‘BUY NOW PAY LATER’!! What You May Not Know About These Services Services like “buy now pay later” now account for $100 [...]

  • Published On: June 13, 2022

    Diane Drain received the 2022 Preeminent Award and Gold Client Champion Award from Martindale-Hubbell. The 2022 AV Preeminent award is given to an "elite group of attorneys who have been rated highly by their [...]

  • Published On: April 16, 2022

    ARIZONA IS ONE OF 2 STATES THAT WILL TAKE YOUR TAX REFUND IF THIS HAPPENS.  SHOULD THE LAW CHANGE? By RUSS WILES, Arizona Republic (reprinted for educational purposes only) Tens of millions of Americans [...]

My intention is to put you back in control of your life
Start with $0 down*. We provide affordable payment plans.

FREE CONSULTATION