Dive Brief:
- Citibank is being fined nearly $18 million over flood insurance violations dating back to 2014, the Office of the Comptroller of the Currency (OCC) said Tuesday.
- The bank "failed to purchase regulatory required flood insurance on behalf of borrowers with loans secured by buildings and mobile homes located in special flood hazard areas where flood insurance is available in a timely manner," the agency said in a press release.
- Citibank allowed an unnamed third-party servicer to extend the 45-day period for borrowers to get flood insurance, resulting in an "untimely" delay, according to a consent order published Jan. 17.
Dive Insight:
Citi has already paid the fine to the Federal Emergency Management Agency’s National Flood Insurance Program. But the regulator has flagged the bank for other, long-running issues, particularly in real estate.
The OCC fined Citi $30 million in October, saying it repeatedly violated holding period regulations on foreclosed real estate. The bank pledged to correct violations regarding its other real estate owned practices but submitted "numerous untimely requests to extend the holding period," as recently as August, according to court documents.
In a statement regarding the flood insurance fine, a Citi spokesman said the bank was "pleased to have the matter resolved," adding that the penalty had "no impact to borrowers or investors."
