The investment bankâs CitiFinancial unit is accused by authorities in 35 states of not disclosing 91,127 loans originating between 2004 and 2007.
According to the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, the subsidiary of the group has agreed to pay the full fine.
An internal system error was blamed for the failure of Citigroup to make the authorities aware of the loans.
Steven Antonakes, Massachusetts' commissioner of banks, was quoted by Reuters as saying: âHMDA remains the primary tool we use to ensure compliance with fair lending laws and regulations.
âBy failing to accurately report all required transactions, CitiFinancial hampered our ability to complete that assessment.â
The investment banking group explained that the error was an unintentional mistake and no customers had been harmed.
Lenders must inform the authorities of the number of loans they provide as part of the governmentâs Home Mortgage Disclosure Act.
Banking regulators in Massachusetts were the first to discover the error by the group.
By Jim Ottewill