realestatelawcenter Real Estate Law Center Opposes Citibank As one of the nation's largest banks, Citibank is a prime example of a financial institution too big to fail, but to Real Estate Law Center, it does not mean that it should be beyond being held accountable, particularly to the homeowners it has wronged. Like so many other banks, Citibank was caught writing subprime loans to individuals who wanted their own home and piece of the American dream. But, the bank gave loans to individuals who had no income. For those who had a job, the banks at the time were found to have increased their pay on loan forms so they could qualify for a bigger house than they could afford. Some potential homeowners qualified for regular mortgages, but because of the bonuses that ran rampant among the banks at the time, loan officers talked them into taking subprime loans instead. Before the real estate and mortgage bubble burst, banks rarely encountered foreclosed properties because the skyrocketing appreciation of homes. After the bubble burst, more families failed to make payments and banks found the homes they were foreclosing on were worth less than what they appraised.