In order to make Citigroup's "best practices" a reality, a coalition of civil rights and consumer groups is calling on the company to eliminate mandatory arbitration in subprime mortgage loans.Groups such as the AARP, the Leadership Conference on Civil Rights, the NAACP, the Consumer Federation of America, the National Association of Consumer Advocates, the National Consumer Law Center, Consumers Union, the U.S. Public Interest Research Group, and the Center for Responsible Lending say mandatory arbitration is out of step with the practices of Freddie Mac, Fannie Mae, and many of the largest mortgage lenders in the country. Citigroup and the Association of Community Organizations for Reform Now recently agreed to what they call a "landmark partnership" to collaborate on initiatives to promote homeownership in low- to moderate-income neighborhoods. By entering into the agreement, ACORN endorsed the lending initiatives and improvements that Citigroup has made since November 2000. Michael Shea, executive director of ACORN Housing Corp., Chicago, said Citigroup has made enough improvements to warrant the endorsement but that ACORN continues to disagree with the company on the issue of mandatory arbitration.
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Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
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Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
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Senior executives making over $151,000 would still be subject to such clauses should the rule go into effect this year.
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Christopher J. Gallo and his aide, Mehmet A. Elmas, allegedly withheld information in mortgage applications, hiding that borrowers were purchasing second home properties.
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Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
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Independent mortgage bankers lost the most money ever on every loan originated last year due to higher rates and lower volumes, an industry trade group said.
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