CitiMortgage a division of Citi Group has apparently decided to exit or sell their loan servicing business. The company to handle the loans is Cenlar. A company who has nothing but bad reviews.
The letter we received from Citimortgage comes two weeks before the first payment is due! With no prior notification, and nothing mentioned on the CitiMortgage portal /dashboard. it is alarming that the letter looks like a total scam, but apparently as confirmed by a rep from Cenlar and CitiMortgage in the Philippines, the letter is accurate.
The issues are countless as Cenlar cannot setup accounts, less than two weeks from the due date. Both parties claim that auto payments will be transferred and there will be no late fees.
If you are a Citi Mortgage customer you should be very worried that this transition is plagued with problems especially since Citi claims they are doing everything to ensure a smooth transition. You can read more about the 2017 Citi press release here
Citi was fined for unscrupulous practices of $8.6 million by the Federal Reserve, not much has been written about this. Here is the story.