New York Citi issued the following statement today on the settlement it has reached with the Office of the Comptroller of the Currency to resolve an issue Citi identified in 2015 pertaining to violations of the statutory holding period for Other Real Estate Owned (OREO) properties.
“The maximum holding period for foreclosed properties by a national bank may not exceed five years. In some instances, we did not meet the requirement. The issue, involving approximately 200 properties, was identified in 2015 and there was no impact on our customers.
"Since identifying the issue, we have strengthened controls, processes and procedures to ensure the timely disposition of these assets. Most importantly, we consistently worked to ensure the responsible disposition of the properties to avoid negatively affecting the real estate market in those communities.”