Citigroup (NYSE: C) will pay Nebraska $14,000 as part of a settlement with 35 states for failing to report more than 91,000 mortgage loans that it made to state and federal regulators.
Regulators discovered that Citigroup’s Citi Financial had failed to report 91,127 residential mortgage loans between 2004 and 2007.
The Federal Home Mortgage Disclosure Act requires that banks report information such as the ethnicity of the borrower, the amount of the loan and whether or not the loan was approved in order to ensure compliance with fair lending laws and regulations.
Citigroup will have to pay a total fine of $1.25 million to 35 state mortgage regulators as part of its settlement. The company also agreed to improve its systems to make sure that all of its loans are reported in the future.
Citibank spokeswoman Molly Meiners told the press that the error was accidental and that the company has filed corrected reports with the Federal Reserve and has since fixed the issues related to Citi’s software systems. Meiners said that no customers were harmed by the failure to report.
