Citigroup agrees to $158.3 million settlement
Citigroup agrees to $158.3 million settlement
Citigroup Inc.’s Citimortgage unit agreed to pay $158.3 million to settle claims tied to its actions in a federal home-loan insurance program, Bloomberg reported.
The United States settled a lawsuit against the Citigroup unit that alleged more than six years of misconduct in connection with the Federal Housing Administration Direct Endorsement Program, the U.S. Attorney’s office for Manhattan said today in a statement. In the settlement, Citimortgage admitted to falsely stating that some loans were eligible for mortgage insurance through the U.S. Department of Housing and Urban Development, according to the statement.
“For far too long, lenders treated HUD’s insurance of their mortgages like they were playing with house money,” Manhattan U.S. Attorney Preet Bharara said in the statement. “In fact, they were playing with other people’s money and other people’s homes.”
Five banks including Citigroup settled with 49 states on Feb. 9 to end a probe into abusive foreclosure practices, with Citigroup agreeing to pay as much as $2.2 billion.
“We are pleased to resolve this matter in conjunction with the National Mortgage Settlement reached last week among the five largest mortgage servicers and the Department of Justice and state attorneys general,” Mark Rodgers, a Citigroup spokesman, said in an emailed statement. “As with the larger mortgage agreement, we have fully provided for this settlement as of the fourth quarter of 2011.”
Citigroup said Feb. 9 that it will record a $125 million after-tax charge to fourth-quarter results “in connection with the resolution of related mortgage litigation,” according to a statement.
Citigroup Inc.’s Citimortgage unit agreed to pay $158.3 million to settle claims tied to its actions in a federal home-loan insurance program, Bloomberg reported.
The United States settled a lawsuit against the Citigroup unit that alleged more than six years of misconduct in connection with the Federal Housing Administration Direct Endorsement Program, the U.S. Attorney’s office for Manhattan said today in a statement. In the settlement, Citimortgage admitted to falsely stating that some loans were eligible for mortgage insurance through the U.S. Department of Housing and Urban Development, according to the statement.
“For far too long, lenders treated HUD’s insurance of their mortgages like they were playing with house money,” Manhattan U.S. Attorney Preet Bharara said in the statement. “In fact, they were playing with other people’s money and other people’s homes.”
Five banks including Citigroup settled with 49 states on Feb. 9 to end a probe into abusive foreclosure practices, with Citigroup agreeing to pay as much as $2.2 billion.
“We are pleased to resolve this matter in conjunction with the National Mortgage Settlement reached last week among the five largest mortgage servicers and the Department of Justice and state attorneys general,” Mark Rodgers, a Citigroup spokesman, said in an emailed statement. “As with the larger mortgage agreement, we have fully provided for this settlement as of the fourth quarter of 2011.”
Citigroup said Feb. 9 that it will record a $125 million after-tax charge to fourth-quarter results “in connection with the resolution of related mortgage litigation,” according to a statement.
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