Citigroup to pay lending settlement

The Federal Reserve today said Citigroup had agreed to pay $70 million to settle allegations that it had violated federal fair…

The Federal Reserve today said Citigroup had agreed to pay $70 million to settle allegations that it had violated federal fair-lending laws and attempted to mislead bank examiners.

The settlement will require Citigroup and its Baltimore subsidiary CitiFinancial Credit Company to pay restitution to some recipients of home mortgage and subprime loans made in 2000 and 2001.

The fine total may be reduced by up to $20 million, based on the amount of actual restitution made to borrowers, the Fed said.

Citigroup did not admit the allegations in the order.