Citigroup paying $7 billion to settle federal investigation into subprime mortgages

Citigroup has announced it will pay roughly $7 billion to settle a federal investigation into risky subprime mortgages that were given out leading up to the 2008 financial crisis.New York State is slated to receive $182 million from Citigroup as part of that settlement. According to state Attorney General Eric Schneiderman, roughly half of New York’s share will go to programs that help New Yorkers struggling to hold on to their homes including mortgage-principal forgiveness and loan refinancing for current Citi clients. The money will also be used to assist local governments with community revitalization efforts including land banks, legal services and housing counseling agencies that provide no-cost representation through the attorney general’s Homeowner Protection Program.