Citigroup agrees to $158.3M settlement in loan-quality suit

Citigroup has reached a settlement with the federal government over allegations it failed to perform quality-control practices on mortgages. The bank's CitiMortgage unit will pay $158.3 million to resolve the suit. CitiMortgage has admitted as part of the deal that it sent loans that didn't meet underwriting rules to a federal mortgage-insurance program. The action is the latest salvo from the federal government trying to collect civil fines from companies that are accused of contributing to the housing crisis.

View Full Article in:

Wall Street Journal (tiered subscription model), The

Published in Brief: