Citigroup Fined $25 Million by US Bank Regulator for Breaching Fair Lending Rules

On Tuesday, the U.S. Office of the Comptroller of the Currency (OCC) stated that it had fined Citigroup $25 million for breaching the Fair Housing Act by declining some borrowers’ preferential rates on the basis of their race, colour or other determinants. In 2012, Citi enforced a program that offered slashed pricing for mortgage borrowers, which kept certain levels of assets with the bank, typically called as relationship pricing. The bank later discovered some errors with the program that resulted in some mortgage customers failing to receive the benefit that they were eligible to. The errors troubled borrowers across gender, race and ethnicity, in contravention of the Fair Housing Act, according to the OCC.

 

 

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