Economy

Whistleblower Alleges Citigroup Was Committing Mortgage Fraud Into 2012

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In the latest issue of Bloomberg Businessweek, Sheery Hunt, a former manager at Citigroup, alleges that the bank was committing mortgage fraud into 2012, even after Citi was party to a $25 billion foreclosure fraud settlement. Hunt claimed that since 2006 Citi “was buying mortgages from outside lenders with doctored tax forms, phony appraisals and missing signatures.” Her job was to uncover such problems, but “executives buried her findings, Hunt says, before, during and after the financial crisis, and even into 2012.” Hunt’s unit estimated in 2007 that 60 percent of the mortgages Citi was trading had documentation issues.