A unit of Citigroup Inc. mortgage has agreed to pay out $158.3 million in order to resolve allegations from the U.S. regarding the quality of the loans it had submitted to a U.S. government-backed mortgage insurance program.

As a part of the settlement, CitiMortgage Inc. conceded that it had submitted loans to be insured by the U.S. Department of Housing and Urban Development that didn't meet all of the program's underwriting requirements.