The Citigroup Inc (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren

WASHINGTON (Reuters) - The Federal Reserve said Friday it had fined Citigroup C.N $8.6 million over shoddy mortgage documentation practices at a subsidiary.

The Fed said that in 2015, CitiFinancial, a bank subsidiary, mishandled customer files as it was preparing to wind down its mortgage servicing business. The regulator said the problem occurred in 2015 and was corrected, and CitiFinancial exited that line of business in 2017.

The Fed also said it was terminating a separate 2011 enforcement action against Citigroup on a separate residential mortgage loan servicing matter, citing sustainable improvements by the bank.