CitiMortgage and the Department of Housing and Urban Development's Office of Inspector General (OIG) are at loggerheads over the proper way to vet at-risk borrowers for the Federal Housing Administration's (FHA) short sales program.

OIG auditors contend the O'Fallon, Mo., based mortgage company has not properly determined borrowers' eligibility for the program and CitiMortgage should reimburse FHA for 63 claims totaling $5 million.

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