Wednesday, February 15, 2012

Citigroup Mortgage Pays $158M in HUD Settlement

Citimortgage unit agreed to pay $158.3 million to settle claims tied to its actions in a federal home-loan insurance program, the Manhattan U.S. Attorney’s office said.
The U.S. 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 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.”

Read the rest of the article at Bloomberg

1 comment:

  1. Citimortgage unit agreed to pay $158.3 million to settle claims tied to its actions in a federal home-loan insurance program, the Manhattan U.S. Attorney’s office said. http://thewirenow.com/

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