Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Still Fighting
For those of us looking at our options of still going solo against Ameriquest and Litton, will Citi Group be liable in future settlements?
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O -

I would think so...Just one more to ad to the game.

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This is kind of a complicated question.

*First, establish the facts of your loan.

Origination date:

The last date Ameriquest had control of your loan. 

Were they able to sell the loan to Litton?

If so, find the date.

* Second question.  Statute of Limitations.

The date you became aware that you became harmed.

Sometimes the date of a statute of limitations problem will be phrased
something like; or the date you should have reasonably known.
Like I said, it could be complicated and vary from state to state.

Your state's civil suit vs perhaps Federal jurisdiction.

What are the issues concerning your loan with Ameriquest?

Are there connecting issues with Ameriquest that carry forward to

Or are there separate issues?

If so, make sure it makes sense to file just one suit.

If you end up with Citigroup rearing it's ugly head, you need to address that when it happens.

Whatever complaint that you file, you can always amend the complaint
by adding Does 1 through 100.  (that just means there may be other
parties added as discovery goes forward and become known to you. 

So try to get the answers and get a lawyer to take a look to see
what he/she opines and what plan of action he/she would implement.

Some of the decision might be based on what proof you have concerning the allegations. 

This might not be all you need to get the answer but will certainly give
you a handle on it.

If you think of something else, then use it.


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Still Fighting wrote:
For those of us looking at our options of still going solo against Ameriquest and Litton, will Citi Group be liable in future settlements?

A corporation that aquires another assumes almost all the assets as well as obligations of the other unless those are specifically extricated in the agreement. Because Citi is a publicly-traded company, their reports to the SEC will have to reveal what is and what isn't included and they will have to outline any potentially adverse consequences being faced in litigation somewhere along the line. Given the size of Citi, Ameriquest's legal troubles probably won't be reported as anything that could have a material impact on earnings.

If you're going-it-alone against Ameriquest now, only the names may change as time goes on. They can't dodge a settlement just by being bought out. BUT - and this isn't legal advice, their pockets just deepened enormously and the court's willingness to allow them extra time to get organized during the transition won't work in your favor.


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You might want to establish whether or not there was an existing business relationship between Litton and Citi at all prior to the sale. You might want to start getting comfortable with SEC filings at

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Top Gun!
for me the target is the same as it was, Just going to ad Bevis and but head to the great long list of players.........R&D Arnall are at the top of the list, and the top 25 down.

Litigation should be getting more interesting soon, New players just means more to help be a pain in the butt to the old players. LOL can't hardly wait!
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CitiGroup Settles Predatory Lending Charges for $215 Million

WASHINGTON, Sept. 19, 2002 -- Citigroup Inc. will pay $215 million to resolve Federal Trade Commission charges that its Associates subsidiaries engaged in systematic and widespread deceptive and abusive lending practices. It's the largest consumer protection settlement in FTC history.


Citigroup acquired The Associates in November 2000, and merged The Associates' consumer finance operations into its subsidiary, CitiFinancial Credit Company. The settlement is contingent on approval of the federal district court in Atlanta and approval of a related settlement in a class action lawsuit currently pending in California.

If approved, the FTC and class action settlements together will provide $240 million in redress to consumers throughout the United States and its territories.

"The Commission will not tolerate the fleecing of subprime borrowers through deceptive lending practices such as the packing of unwanted credit insurance on consumers' loans," said Timothy J. Muris, Chairman of the FTC. "As a result of this settlement, as many as two million consumers will receive significant monetary relief in the form of cash refunds or reduced loan balances."


"I am pleased that Citigroup has agreed to remedy the grave injury caused by The Associates and that Citigroup has announced new measures at CitiFinancial aimed at preventing these kinds of problems. If fully implemented, these are positive steps in an industry that for too long has been plagued by deception and abuse. We will be looking to ensure that the law is obeyed," Muris said.

Subprime lending refers to the extension of loans to persons who are considered to be higher risk borrowers. The Associates was one of the nation's largest "subprime" lenders. In 1999, the total dollar amount of all outstanding loans in The Associates' U.S. consumer finance portfolio was approximately $30 billion.

In March 2001, the FTC sued The Associates in the United States District Court for the Northern District of Atlanta, alleging that it had violated the FTC Act through deceptive marketing practices that induced consumers to refinance existing debts into home loans with high interest rates and fees, and to purchase high-cost credit insurance. The complaint also named as defendants Citigroup and CitiFinancial, as successors to The Associates.

The complaint charged that The Associates engaged in deceptive practices designed to induce borrowers unknowingly to purchase optional credit insurance products, a practice known as "packing." These insurance products were intended to cover the borrower's loan payments in various circumstances, such as death or illness, and the premiums were added to the principal amount of the loan ("single-premium credit insurance").

If the consumer noticed that the credit insurance products were being added to the loan, The Associates' employees used various tactics to discourage them from removing the insurance, the complaint alleged. The complaint also charged The Associates with additional deceptive practices and law violations.

If approved, the settlement will provide $215 million in redress to consumers who bought credit insurance in connection with loans made by The Associates over a five-year period between December 1, 1995 and November 30, 2000. The class action settlement will provide an additional $25 million to consumers whose Associates mortgage loans were refinanced, or "flipped," by The Associates during the same time period. Together, these settlements will provide $240 million in consumer redress for Associates borrowers.

It may take several months for the courts to approve the settlement.

Information for Consumers
In the next several weeks, consumers will receive a notice of the settlement in the mail that will explain how they can participate in the redress program. Consumers who have already received full premium refunds, or who have released their claims in connection with other settlements, will not be eligible for redress. Under the program, eligible consumers with closed loans (loans that have been paid off or refinanced) will receive their refund by check, and those with currently open loans will receive their refund through a reduction in the outstanding balance of their loan. To participate in the redress, consumers with open loans must agree to cancel their credit insurance.

The Commission's toll-free consumer hotline regarding the settlement is 1-877-862-0886. Consumers who have changed their address recently may provide updated contact information by calling the hotline. The Commission also will have a Web page dedicated to the settlement at At this time, it is not necessary for consumers to take any action other than watching their mail over the next several weeks for notice of the settlement.

Today the FTC also has issued a consumer alert, "Credit Insurance, Is It For You" to help borrowers decide if credit insurance, which is usually optional, is right for them. Credit insurance protects the loan on the chance that you can't make your payments, but it can be expensive. Before agreeing to buy credit insurance, consumers should know how much the premium is, whether it is financed as part of the loan, and how much lower their monthly loan payments would be without the credit insurance. Consumers also should review their loan papers carefully to make sure they do not include unwanted credit insurance.

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Citigroup unit and Deloitte are sued over subprime lender's share issue

The four million shares issued by American Home Mortgage Investment have dropped by 99 percent since they were first offered for sale on April 30 at $23.10 each through Citigroup Global Markets.

Deloitte prepared American Home's financial reports before the issue.

"The offering materials that they issued all omitted information that was material to investors," Matthew Heffner, an attorney for the shareholder bringing the suit, said Friday.

American Home, based in Melville, New York, is one of at least 17 mortgage lenders that have sought bankruptcy protection since December. Shareholders have filed at least five other lawsuits against the company related to the rapid plunge in the value of its stock.

A Citigroup spokesman, Stephen Cohen, declined to comment. A Deloitte spokeswoman, Deborah Harrington, said the company did nothing wrong.

"Deloitte believes that its work for American Home Mortgage was performed in accordance with the highest professional standards, and it intends to defend this suit vigorously," Harrington said.

Citigroup buys loan business

Citigroup agreed to buy the wholesale mortgage origination and servicing businesses of ACC Capital Holdings, operator of Ameriquest Mortgage and once the biggest U.S. subprime home lender.

Citigroup said Friday that it obtained an option to buy the units in February, when it gave ACC a $100 million cash infusion to bolster the company's finances.

Citigroup exercised the option Friday for no additional payment beyond the value of ACC's $65 billion servicing portfolio and a loan portfolio of less than $1 billion, said Jeffrey Perlowitz, head of global securitization at Citigroup's investment bank.

"In a deteriorating market, it was obvious that this was a good time to exercise this option," Perlowitz said. "Production can't be this bad forever."

The businesses acquired by Citigroup employ 2,000 people in Illinois and California. Citigroup will replace some managers, Perlowitz said.

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CITIGROUP INC.                                                                                                                     

  Ticker: C              Security:

Meeting Date: 17-Apr-2007          Meeting Type: Annual                                                                           

  1a    Election Of Director: C. Michael Armstrong.                                           Management  For      Voted - Against 
  1b    Election Of Director: Alain J.P. Belda.                                               Management  For      Voted - For     
  1c    Election Of Director: George David.                                                   Management  For      Voted - For     
  1d    Election Of Director: Kenneth T. Derr.                                                Management  For      Voted - Against 
  1e    Election Of Director: John M. Deutch.                                                 Management  For      Voted - Against 
  1f    Election Of Director: Roberto Hernandez Ramirez.                                      Management  For      Voted - Against 
  1g    Election Of Director: Klaus Kleinfeld.                                                Management  For      Voted - For     
  1h    Election Of Director: Andrew N. Liveris.                                              Management  For      Voted - For     
  1i    Election Of Director: Anne Mulcahy.                                                   Management  For      Voted - For     
  1j    Election Of Director: Richard D. Parsons.                                             Management  For      Voted - Against 
  1k    Election Of Director: Charles Prince.                                                 Management  For      Voted - Against 
  1l    Election Of Director: Judith Rodin.                                                   Management  For      Voted - For     
  1m    Election Of Director: Robert E. Rubin.                                                Management  For      Voted - Against 
  1n    Election Of Director: Franklin A. Thomas.                                             Management  For      Voted - Against  



  02    Proposal To Ratify The Selection Of KPMG LLP As Citigroup's Independent                                                    
         Registered Public Accounting Firm For 2007.                                          Management  For      Voted - Against

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