WASHINGTON Citigroup Inc (C.N) mortgage units have been fined $28.8 million for keeping home borrowers in the dark about options to avoid foreclosure and making it difficult for them to apply for relief, the U.S. consumer finance watchdog said on Monday.
CitiMortgage will pay an estimated $17 million to compensate wronged consumers, as well as a civil penalty of $3 million, the Consumer Financial Protection Bureau said. CitiFinancial Services will refund approximately $4.4 million to consumers, and pay a civil penalty of $4.4 million.
The CFPB said the subsidiaries neither admitted nor denied the findings in the consent orders.
"“We are pleased to resolve these matters," said Mark Rodgers, director of Citi public affairs.
In the first hour after the penalties were announced, Citi shares dropped to $55.52 from $55.77....