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Citibank Slapped With $25 Million Fine

Federal officials have ordered Citibank to pay a $25 million fine for its violations of the Fair Housing Act. The Office of the Comptroller of the Currency (OCC) determined did not consistently offer discounts to all mortgage customers. Citibank will also directly pay consumers $24 million to make up for the violations.

According to the OCC, Citibank had certain control weaknesses related to its Relationship Loan Pricing (RLP) program designed to provide eligible mortgage loan customers either a credit to closing costs or an interest rate reduction. As a result of these control weaknesses, some bank borrowers did not receive the RLP benefit for which they were eligible and were adversely affected on the basis of their race, color, national origin, or sex.

In a statement to the wire service Reuters, Citibank said, “Citi self-reported the issue to the appropriate regulators, conducted a comprehensive review, strengthened processes and controls to help ensure correct implementation going forward and has largely completed reimbursements to the identified customers.”

The OCC said in its statement the bank has initiated and largely completed a plan to reimburse all customers who did not receive the appropriate RLP benefit, including those customers by these violations, and is taking other appropriate corrective action to prevent future violations. The bank will provide reimbursement to approximately 24,000 customers in the amount of approximately $24 million as a result of the bank’s failures and control weaknesses.

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