Citibank Fined $30 Million for Holding REOs Too Long
An REO speed wagon they are not; HousingWire is reporting that Citibank was recently fined $30 million for holding onto foreclosures for far too long, exceeding a 5-year REO limit on hundreds of homes. They reported that under the Office of the Comptroller of the Currency (OCC) regulations, there is a two-year limit on banks maintaining possession of a foreclosed property, although banks can apply for an exemption that takes it up to 5 years. Citibank said the the issue only applied to 200 properties.
“The OCC found the bank engaged in repeated violations of the statutory holding period for OREO,” the OCC said in a statement. “These violations resulted from the bank’s deficient processes and controls in the identification and monitoring of the OREO holding period. In assessing this civil money penalty, the OCC found the bank failed to meet its commitment to implement corrective actions, resulting in additional violations.”