The Board of Governors of the Federal Reserve has fined Citigroup $8.6 million for “the improper execution of residential mortgage-related documents.”
The $8.6 million penalty addresses the deficient execution and notarization of certain mortgage-related affidavits prepared by a subsidiary, CitiFinancial. The improper practices occurred in 2015 and were eventually corrected.
Beginning in the second half of 2014, Citigroup began taking steps to exit the mortgage servicing business of CitiFinancial. That extrication was completed in 2017.
During that process, Citigroup identified and reported evidence of improprieties that took place from January 2015 through August 2015.
The Fed also announced, on Aug. 10, the termination of an enforcement action from 2011 against Citigroup and CitiFinancial related to residential mortgage loan servicing. The termination was based on “evidence of sustainable improvements.”