CitiMortgage Settles Federal Fraud Charges For $158 Million

Posted by Orb Staff on February 16, 2012 No Comments
Categories : Residential Mortgage

10947_0alawsuit CitiMortgage Settles Federal Fraud Charges For $158 Million The federal government has announced the settlement of a fraud lawsuit against CitiMortgage Inc., a subsidiary of Citibank N.A. CitiMortgage will pay $158.3 million to settle the reckless lending charges brought under the False Claims Act, which stem from the lender's misconduct in the Federal Housing Administration's (FHA) Direct Endorsement Lender Program.

According to a statement issued by the U.S. Department of Housing and Urban Development (HUD), CitiMortgage ‘admits, acknowledges, and accepts responsibility’ for certain conduct alleged in the complaint, including, ‘[failing] to comply fully with all HUD-FHA requirements with respect to certain loans’ and ‘[submitting] to HUD-FHA certifications stating that certain loans were eligible for FHA mortgage insurance when, in fact, they were not.’

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