Citibank Slapped With $30 Million Fine For Leaving Hundreds Of REO Properties Vacant Past The 5-Year Limit
Federal banking regulators have slapped Citibank with a $30 million fine. An investigation found that the bank was not selling foreclosed homes back into the market fast enough.
The Office of the Comptroller of the Currency announced it fined Citibank $30 million for “violations related to the holding period of other real estate owned.”
Federal investigators found more than 200 violations between April 4, 2017, and Aug. 14, 2019. However, Citibank states that the problem was limited to those 200 properties.
Federal banking regulations only allow banks with a two-year limit on possessing foreclosed properties. However, 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.