ANOTHER BIG MORTGAGE BANK ADMITS WRONGDOING DISTRESSED MORTGAGE HOLDERS TO BENEFIT THIS COULD MEAN YOU!

Citigroup has agreed to pay $7 billion dollars to acquire a settlement offered by the U.S. Attorney General. One of the nation’s biggest mortgage banks, Citigroup, like JP Morgan before them, has agreed to pay this settlement because of selling securities backed by unstable mortgages. The buyers of the securities suffered mammoth financial losses when the value of the securities dropped as the mortgages that backed them failed. Among those losers in Illinois were several of our largest retirement systems.

Illinois is to receive $84 billion, which is divided into $44 million for the pension funds and $40 million for consumers. That $40 million is available for refinancing of mortgages that are past due. Such refinancing should permit many Illinoisans to reduce their home mortgage interest rates. Because so many families had their mortgages foreclosed, the settlement includes money to build rental units in larger cities so displaced families have somewhere to go.

Details of the disbursement of the settlement will be available through the Illinois Attorney General’s Office. If you have a Citigroup mortgage, ask them about options available for you through the settlement.

No Citigroup executives have yet been found criminally liable for their roles in the 2008 financial disaster that touched nearly the entire world. Portions of the $7 billion settlement will be tax deductible for Citigroup. After the settlement, stock shares for Citigroup went up 3 percent as investors regained their confidence in the company in light of the certainty of the amount owed through the finalized agreement.

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