Citi May Have to Refile Thousands of Forelcosure Affidavits

Citigroup Inc (C) said it may have to refile thousands of foreclosure affidavits.

The bank is reviewing 10,000 affidavits executed before the company overhauled its foreclosure operation in February, Harold Lewis, a managing director with CitiMortgage said in written testimony for a congressional hearing. Bloomberg News reported his comments.

About 4,000 affidavits may not have been notarized and may have to be resubmitted, Lewis said.

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Citigroup continued seizing homes even as rivals such as Bank of America Corp. (BAC) halted foreclosures to check paperwork.

Evidence has emerged that many lenders were using flawed documents to foreclose on homes. Attorneys general in all 50 states are investigating foreclosure proceedings.

Citigroup's improved training means the bank does not have to impose a delay on foreclosures, Lewis said.

"The changes and safeguards implemented this year give Citi confidence that there are no systemic issues in its existing foreclosure processes," Lewis said in comments to be delivered at a House Financial Services Committee hearing on foreclosures. "Citi has not suspended its foreclosure process and believes there is no reason to do so."

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