Citigroup has reached a $7 billion agreement to settle faulty mortgages that the bank sold leading to the 2008 financial crisis.

About $2.5 billion of the settlement is supposed to be used to offer relief to mortgage borrowers. The relief would include:

  1. Loan modification for underwater borrowers.
  2. Refinancing for distressed borrowers.
  3. Down payment and closing cost assistance to homebuyers.

    Citi has not specified who would be eligible for assistance and when consumers would be notified. The lender says in the “coming weeks and months” it will evaluate who is eligible under the settlement programs and will contact the borrowers.

    “The assistance available as a result of the settlement will depend on each individual situation,” says a Citi spokeswoman. “Eligibility criteria and specific solutions are still being determined. In the meantime, it is important for customers to continue to make payments in a way consistent with their loan agreements.”

    Most of the money, $4 billion, will be paid to the Justice Department as a civil penalty. The rest will go to other entities, including the states of California, New York, Illinois, Massachusetts and Delaware.

    An independent monitor will be appointed to oversee the settlement.