What the Citimortgage lawsuits were about
Between 2008 and 2015, Citimortgage (the mortgage servicing arm of Citigroup) faced multiple lawsuits and regulatory actions over how it handled loan modifications for homeowners struggling to pay. The core complaint: the company failed to properly review modification requests, lost documents, missed important date, and sometimes denied modifications that should have been approved under federal programs like the Home Affordable Modification Program (HAMP).
These weren't isolated complaints. The Consumer Financial Protection Bureau (CFPB), state attorneys general, and individual homeowners all brought cases. Citimortgage eventually settled with regulators and agreed to review thousands of loan modification decisions it had previously denied.
If you were a Citimortgage borrower during this period and your modification was denied, you may have been part of a group may be able to access for review or compensation. Understanding what happened and what options existed—or still exist—matters for your financial recovery.
Key Takeaways
- Citimortgage settled regulatory cases by agreeing to review denied loan modifications and compensate affected borrowers, but the settlement window has largely closed.
- If your modification was denied between 2008 and 2015, you can check whether you were included in any settlement by contacting Citimortgage directly or reviewing settlement notices you may have received.
- Lawsuit loans (also called litigation funding) are cash advances against a potential settlement or judgment, but they carry high fees and should only be considered if you have an active legal claim.
- Most Citimortgage settlement claims have been resolved; new claims are unlikely to be accepted, but you can still pursue a separate lawsuit if you believe you have grounds.
- Before taking a lawsuit loan, understand that the lender takes a percentage of any money you recover, and you remain responsible for repayment if your case loses.
The Citimortgage settlements and who was affected
Citimortgage faced enforcement actions from the CFPB, the U.S. Department of Justice, and state regulators. The company agreed to multiple settlements that required it to review previously denied modifications and pay compensation to borrowers who were wrongfully denied.
One major settlement, finalized in 2015, required Citimortgage to review approximately 250,000 loan modification decisions made between 2008 and 2012. Borrowers in that group received written notice if they were affected. The company was required to either approve modifications that met program guidelines or pay cash compensation ranging from a few hundred to several thousand dollars per borrower, depending on the circumstances.
If you received a notice letter from Citimortgage or a settlement administrator between 2013 and 2016, you were likely part of one of these groups. That letter would have explained whether you were owed money and how to claim it. Most of these settlement windows have closed, though some claims were still being processed as recently as 2018.
How to learn about you were part of a settlement
Start by checking your records. Look for any letters from Citimortgage, a settlement administrator, or a law firm that handled the case. These letters typically arrived by mail and explained your status and claim important date. If you kept mortgage documents, check those files first.
If you cannot find a letter, contact Citimortgage's customer service directly. You can reach them through your mortgage statement or by calling the number on your most recent bill. Tell them you want to know whether you were included in any loan modification settlement between 2008 and 2015. They should be able to look up your loan account and tell you whether a settlement applied to you and whether the claim window is still open.
You can also search online for "Citimortgage settlement" along with your state name. Some settlements maintained public claim websites or databases. If you were part of a class action lawsuit, the settlement agreement and claim information may still be posted on the case website.
Understanding lawsuit loans and when they matter
A lawsuit loan (also called litigation funding or a settlement advance) is a cash advance against money you expect to recover from a lawsuit or settlement. The lender gives you money now; when your case settles or you win a judgment, the lender takes a percentage of what you receive as repayment plus fees.
For Citimortgage cases, lawsuit loans are most relevant if you have an active claim—meaning your case is still pending and you are waiting for a settlement or judgment. If the settlement window has already closed and you did not claim, a lawsuit loan will not help you recover money from that settlement.
However, if you believe you have grounds for a separate lawsuit against Citimortgage (for example, if you were wrongfully foreclosed on due to their mishandling of your modification), a lawsuit loan could provide cash while your case is pending. These loans typically range from a few hundred to several thousand dollars, depending on the strength of your claim and the lender's assessment.
The real cost of a lawsuit loan
Lawsuit loans are expensive. Lenders typically charge between 27% and 50% of the money you receive as their fee, plus interest that compounds monthly. If you borrow $5,000 and your case takes two years to settle, you could owe $8,000 or more by the time you repay.
Additionally, you remain responsible for repayment even if you lose your case. Some lenders offer "non-recourse" loans, meaning you only repay if you win or settle, but these carry even higher fees. Before accepting a lawsuit loan, read the contract carefully and understand exactly what percentage the lender will take and what happens if your case is dismissed.
For most people, a lawsuit loan should be a last resort—used only if you have no other way to cover living expenses while your case is pending and you have a strong claim with a realistic settlement value.
What to do if you missed the settlement important date
If you were may be able to access for the Citimortgage settlement but did not claim before the important date, the settlement window has closed and you cannot recover money through that process. However, you have other options.
You can file a separate lawsuit against Citimortgage if you believe you suffered damages due to their mishandling of your loan modification. This would be an individual claim, not part of the class settlement. You would need to work with an attorney who handles mortgage servicing disputes. Many attorneys work on contingency, meaning they take a percentage of any settlement or judgment rather than charging you upfront fees.
Consult with a mortgage attorney in your state to discuss whether you have a viable claim. Many offer free initial consultations. If an attorney believes your case has merit, they may be willing to represent you without requiring a lawsuit loan.
Red flags when considering a lawsuit loan
Be cautious of lenders who contact you unsolicited about a Citimortgage case. Legitimate lawsuit lenders typically work through attorneys or are found when you search for them. Avoid any lender who guarantees a specific settlement amount, promises your case will definitely win, or pressures you to decide quickly.
Also watch for hidden fees. Some lenders charge process fees, processing fees, or monthly service fees on top of their percentage cut. Read the entire contract before signing, and ask the lender to explain every fee in writing.
If a lender tells you that you are may provide to receive settlement money or that they can "help you get your benefits," that is a red flag. No one can may provide a settlement outcome.
Frequently Asked Questions
Can I still claim money from the Citimortgage settlement?
Most settlement claim windows closed between 2016 and 2018. If you did not receive a notice letter or did not claim by the important date, you likely cannot recover through that settlement. Contact Citimortgage directly to confirm whether any claim window is still open for your loan account.
What if Citimortgage says I was not may be able to access for the settlement?
You can dispute this. Ask Citimortgage in writing to explain why your loan was excluded and request documentation of their decision. If you disagree, you can consult with a mortgage attorney about whether you have grounds to challenge the information or file a separate claim.
Do I need a lawsuit loan to pursue a claim against Citimortgage?
No. If you work with an attorney on contingency, they advance the costs of your case and take a percentage of any recovery. This is usually cheaper than a lawsuit loan. Only consider a lawsuit loan if an attorney cannot take your case and you need when ready cash.
How long does a Citimortgage lawsuit typically take?
Individual mortgage servicing lawsuits can take one to three years or longer, depending on whether the case settles early or goes to trial. Class action settlements typically resolve faster, but individual claims move at the pace of the court system in your state.
What happens if my Citimortgage case loses?
If you took a non-recourse lawsuit loan, you owe nothing. If you took a recourse loan, you are responsible for repaying the lender even though your case lost. This is why reading the loan contract carefully is critical before you accept any money.