14th August 2018

Fed Board fines Citigroup for improper execution of residential mortgage-related documents

The Federal Reserve Board has announced an $8.6m fine against Citigroup for the improper execution of residential mortgage-related documents.

The $8.6m penalty addresses the deficient execution and notarisation of certain mortgage-related affidavits prepared by a subsidiary, CitiFinancial. The improper practices occurred in 2015 and were corrected. CitiFinancial exited the mortgage servicing business in 2017.

The Board also announced the termination of an enforcement action from 2011 against Citigroup and CitiFinancial related to residential mortgage loan servicing. The termination of this action was based on evidence of sustainable improvements.