home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

Citi Shrinking Mortgage Business, Assets

Mortgage assets to be reduced by $45 billion

March 6, 2008

By MortgageDaily.com staff

Citigroup is reducing its mortgage holdings, consolidating mortgage operations and tightening mortgage guidelines.

The New York-based company announced today it would reduce its residential mortgage assets in its U.S. mortgage business by approximately $45 billion over the next 12 months. The actions were prompted by a company wide business review that is still in process.

The move, which is intended to increase focus on higher returns and reduce capital and credit exposure, will leave mortgage assets 20 percent below the level as of December 2007 and will reduce its new mortgage portfolio holdings by half over the next year, the statement said.

Citigroup said it will accomplish the reductions by selling more loans to Fannie Mae and Freddie Mac, securitizing more mortgages and "forcing discipline in sales origination."

"In addition, the company will integrate middle office and support areas to serve both first and second mortgage operations, organize sales channels around customer segments, and strengthen ties with Citi Markets & Banking, which will be the primary provider of capital markets services to its U.S. mortgage business going forward," the announcement stated. "Citi will consolidate operations, policies and procedures in its U.S. mortgage business to achieve greater operational efficiency, appropriate alignment of incentives and ensure in-depth, timely understanding of mortgage exposure."

The consolidation will leave the company with just one leader each for correspondent, wholesale and retail, the statement said. Citi Markets & Banking will play a significant role in determining CitiMortgage products, pricing and distribution activities.

Second mortgage originations have already been reduced, with third-party second lien production down by 90 percent from a year ago, the announcement said. But relationships have been maintained with mortgage brokers who produced profitable, higher-quality volume. Also, loan-to-values have been cut and credit scores have improved on more recent originations while documentation and verification requirements have tightened across all products.

Other underwriting changes at CitiMortgage include the elimination of investor programs on three- and four-unit properties, the curtailing of bulk loan purchases and the prohibition of home equity loans behind lower FICO score first mortgages. The company also eliminated 2/28 and 3/27 hybrid adjustable-rate mortgages.

Within 12 months, the moves are anticipated to save the financial services giant $200 million "on a run rate basis."

Citigroup told employees in January that it merged Citi Residential Lending, formerly known as Argent Mortgage Co., into its CitiMortgage unit. Today's announcement indicated Citi Home Equity will also be merged into that unit.

January's notice indicated that Citibank mortgage loan officers and employees of CitiFinancial were not impacted by the consolidation.

"This end-to-end realignment will create a simplified and streamlined organization that is more sharply focused on clients and able to direct resources to the business lines and customer segments with the highest growth potential," Bill Beckmann, president of the consolidated unit, said in today's release. "At the same time, these changes will enable us to manage the business unit's capital for enhanced returns."

While Citigroup noted staffing levels will reflect "market and economic realities," a spokesman was unable to confirm the number of employees or the specific locations impacted by the consolidation.

The latest actions follow a fourth quarter loss of $9.83 billion, capital injections of $12.5 billion and a $2 billion public offering.


Layoffs from Citi Consolidation Not Yet Known
Layoffs and charges from Citigroup's integration of ACC Capital Holdings' former wholesale unit into its own residential subsidiary are not yet known, but the overhauled operation is expected to handle mortgages from origination to securitization.

GSE News | Fannie/Freddie Share Statistics
Fannie, Freddie and FHLB news. Coverage of government sponsored enterprise regulation, operations and litigation.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders