OCC Fines Citibank $30M For Holding On To Foreclosures Too Long
Citibank will be shelling out $30 million after it received the hefty fine by the Office of the Comptroller of the Currency. The OCC issued the fine due to violations in relation to the holding period of other real estate owned.
"Under federal banking regulations, there is a two-year limit on banks maintaining possession of a foreclosed property. The rules stipulate that banks can apply for an annual exemption that can push their ownership of a property to as much as five years," according to HousingWire.
"But after that, the bank is supposed to sell the property back into the market to prevent available housing inventory from being kept away from would-be homebuyers. And according to the OCC, Citibank violated that rule by holding onto hundreds of foreclosures for longer than the five-year limit."
After multiple violations, the OCC revealed that the bank failed to make corrective actions that then resulted in further violations. While the OCC claims there have been over 200 properties affected, the bank maintains that the issue only involved approximately 200 properties back in 2015.
To learn more about the the fine and the OCC's findings, click on the image above.