VOL. 127 | NO. 32 | Thursday, February 16, 2012
Citigroup Pays $158M to Settle Mortgage Fraud
NEW YORK (AP) – Citigroup has agreed to pay $158.3 million to settle claims that its mortgage unit duped the U.S. government into insuring risky mortgage loans for over six years.
The government said Wednesday that Citi Mortgage certified 30,000 mortgages for insurance provided by the Federal Housing Agency and submitted many certifications that were "knowingly or recklessly false."
More than a third of those mortgage loans went into default, resulting in millions of dollars in losses for the government because of the insurance claims.
As part of the civil fraud settlement, Citi accepted responsibility for failing to comply with government requirements and submitting certifications that were fraudulent.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.