CitiMortgage admits to foreclosure paperwork problems
Citigroup, which for almost two months has claimed its process for preparing foreclosure affidavits was sound, is reviewing about 14,000 documents, including 4,000 that may have been notarized improperly, a company official said in written testimony to Congress to be delivered Thursday.
Unlike other large mortgage servicers it competes with, Citi had not frozen foreclosures and had repeatedly declined to publicly discuss any internal reviews it was conducting.
Harold Lewis, managing director of CitiMortgage, said in the written remarks that 10,000 of the 14,000 documents being reviewed are for judicial foreclosures.
The purpose of the review is "to assure that these affidavits are substantively correct and properly executed. Citi expects that affidavits executed prior to the fall of 2009 will need to be refiled," Lewis said.
The other 4,000 documents that are being reviewed were prepared at its Dallas processing center and "may not have been signed in the presence of a notary, to assure that these affidavits are substantively correct and properly executed." Lewis said these affidavits were also be refiled.
Lewis and other representatives from large mortgage servicers--Bank of America, J.P. Morgan Chase, Ally Financial--will take questions from members of Congress Thursday starting at 10 a.m. at a House Financial Services Committee hearing.
Lewis said that Citibank had been taking steps to improve its foreclosure practices since the fall of 2009.
In responding to questions about the robo-signing problems at other servicers, Citi has previously said that it has "have strong training to ensure that appropriate employees are fully aware of the proper procedures."
More on Thursday's hearing on foreclosures before the House Financial Services Committee subcommittee on housing:
Ariana Eunjung Cha
| November 18, 2010; 9:07 AM ET
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