HUD Fines CitiMortgage $700,000 for Failure to Report Delinquencies
The US Department of Housing and Urban Development (HUD) reached a $700,000 settlement with CitiMortgage, Inc. (CMI) after the company failed to report delinquent loans by the specified monthly deadline. The action was reported in a recently released notice of actions being taken against Federal Housing Administration (FHA) lenders that failed to comply with government standards for lending practices. According to the notice, "CMI failed to report all delinquent loans to HUD no later than the fifth business day of the following month...to correct fatal errors that resulted from its monthly reporting to HUD's Single Family Default Monitoring System" and "to comply with HUD/FHA's default servicing reporting requirements when it failed to timely submit a default servicing report." CMI told HousingWire in an e-mail that, "a computer programming error created a data reporting issue. This error has been fully addressed, and no customer funds and no financial losses were involved." HUD closely monitors the default and delinquency results of lenders insured against default-related losses through the FHA program. In January, HUD launched a series of subpoenas against 15 mortgage companies due to high FHA insurance claims. "Any FHA-approved lender that does business with us must follow our standards," said FHA commissioner David Stevens in January. "If we determine that our partners are not playing by the rules, we will take action -- it's that simple." Write to Christine Ricciardi.