CitiFinancial agrees to terms on unreported loans

CitiFinancial reached an agreement with 35 states, including North Carolina, Wednesday to pay $1.25 million for failure to comply with rules on reporting mortgages to the federal government.

An examination by the Massachusetts Division of Banks showed CitiFinancial failed to report 91,127 residential mortgage loans between 2004 and 2007.

CitiFinancial cited an internal systems error for the oversight.

As part of the settlement, CitiFinancial must resubmit those reports, hire an independent consultant to review data from the unreported loans, fix the problem that led to the error and pay the  penalty.