Citi Unit to Pay $1.25 Million for Not Reporting Loans

Wednesday, 24 Mar 2010 03:41 PM

 

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink

The consumer lending arm of Citigroup Inc. will pay $1.25 million for failing to report to federal regulators on more than 90,000 mortgage loans that it made.

CitiFinancial agreed to the penalty in a settlement with 35 state mortgage regulators announced Wednesday by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.

The agreement followed an examination by the Massachusetts Division of Banks on CitiFinancial's compliance with state and federal consumer laws. That examination found the bank had failed to report 91,127 residential mortgage loans originated between 2004 and 2007.

The Home Mortgage Disclosure Act requires all mortgages be reported. These reports are used to ensure compliance with fair lending laws and regulations.

The failure to report the loans was apparently caused by an internal systems error at CitiFinancial that went undetected until the Massachusetts review, the state regulators said.

In addition to the penalty, CitiFinancial agreed to resubmit corrected and completed reports to the Federal Reserve for 2004 to 2007, and to contract an independent review of the unreported transactions to make sure the data does not demonstrate a pattern of discriminatory lending practices.

The penalty will be divided between the 35 state mortgage regulators that are part of the agreement. They are in the following states: Alabama, Arizona, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Utah, Vermont, Virginia, Washington and West Virginia.

In afternoon trading, Citigroup shares added 3 cents to $4.16. The stock has ranged between $2.25 and $5.43 in the past year.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Ex-Official: Defense Secretary's Skill Set Changing

Wednesday, 26 Nov 2014 17:07 PM

The skills needed to run the Defense Department have changed in the past two years since Chuck Hagel took the reins, say . . .

Insiders: Hagel Not the Only Problem With Foreign Policy Team

Wednesday, 26 Nov 2014 13:31 PM

Getting rid of Defense Secretary Chuck Hagel isn't going to be the solution for repairing the problems with President Ba . . .

Sen. Portman on Prez Bid: 'Let's Legislate' Before Talking 2016

Wednesday, 26 Nov 2014 13:04 PM

Ohio Sen. Rob Portman pushed back on any suggestion that he is running for president, even as several headlines have sug . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved