Citibank fined nearly $18 million for flood insurance violations
Citibank is on the hook for just under $18 million in flood insurance violations, according to the Office of the Comptroller of the Currency.
The OCC announced the civil money penalty on Tuesday, saying that Citigroup's main bank subsidiary had violated the Flood Disaster Protection Act. The violations date back to 2014, the OCC said.
"Specifically, 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.
The OCC cited an unnamed third-party service provider used by Citi in connection with the bank's FDPA compliance program.
Citibank "allowed its third-party servicer to extend the 45-day period" for borrowers to pick up flood insurance, resulting in an "untimely" delay, according to the consent order.
In a statement, a Citi spokesman said the company was "pleased to have the matter resolved," adding that the fine had "no impact to borrowers or investors."