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.

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