It’s more bad news for mortgage brokers who utilize CitiMortgage Inc. The wholesale lender has eliminated jumbo loans from its program menu. But retail clients will still have access to a portfolio jumbo product.
The O’Fallon, Mo.-based company recently notified its wholesale customers that it will no longer offer jumbo loans through the broker channel, a spokesman said in a statement to MortgageDaily.com.
“We continue to offer other loan production through a limited number of high quality brokers,” the statement said, “and value the relationships we have in that community.”
Citi scaled back its mortgage broker business in 2008, though it did begin inviting some of those brokers back in February.
Earlier this month, CitiMortgage told mortgage brokers that unless they are currently approved and re-certified by FHA for 2010, they cannot submit FHA registrations.
Today’s statement indicated that jumbo mortgages are still being originated through the retail channel. The retail jumbo product is “attractively priced and are being offered to our highly credit-worthy customers, as we anticipate holding these loans on our balance sheet.”
*Following the publication of this story, Paul Muolo of National Mortgage News asked that he be credited with breaking the story.
