January 21, 2020 / 3:29 PM / a month ago

Citibank to pay $18 million penalty for failing to insure flood-prone properties

FILE PHOTO: A view of the exterior of the Citibank corporate headquarters in New York, New York, U.S. May 20, 2015. REUTERS/Mike Segar/Files/File Photo

WASHINGTON (Reuters) - A U.S. banking regulator fined Citibank N.A. (C.N) $18 million for delays in purchasing mandatory flood insurance for properties where borrowers were located in flood-prone areas.

The Office of the Comptroller of the Currency said Tuesday that insufficient policies meant the bank took too long to acquire necessary insurance on behalf of borrowers located in flood hazard areas. In a statement, a bank spokesman said Citi was happy to resolve the matter, which had no impact on its borrowers or investors.

Reporting by Pete Schroeder; Editing by Chizu Nomiyama

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