Citigroup fined $8.6 million over mortgage-related documents

Federal Reserve Board action relates to improper practices in 2015

Citigroup fined $8.6 million over mortgage-related documents

The Federal Reserve Board has taken action against Citigroup relating to improper execution of mortgage-related documents.

The Fed has fined Citigroup $8.6 million for the improper practices of its subsidiary CitiFinancial in 2015 relating to its exit from the mortgage servicing business.  

In the Consent Order issued by the Fed board it was alleged that:

“…mortgage-related affidavits were executed by CitiFinancial employees making assertions regarding the ownership of the mortgage note (“Lost Note Affidavits”) in which the affiant represented that the assertions in the affidavit were based on personal knowledge or based on a review by the affiant of the relevant books and records, when, in certain cases, the signer was not in a position to have personal knowledge or review the relevant books and records; and (b) Lost Note Affidavits were not properly notarized as they were not signed or affirmed in the presence of a notary.”

The improper execution of certain documents was corrected. CitiFinancial exited the mortgage servicing business in 2017.

The Board has 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.

At time of writing, Citigroup has not made any comment relating to the Federal Reserve Board’s action.