Citigroup Inc.’s mortgage unit is re-establishing relationships with some of the same brokers it previously stopped doing business with. It’s the second time the company has stepped back from an origination channel only to wade in the water again.
In October 2008, CitiMortgage Inc. disclosed that it was cutting off some of its mortgage brokers and focusing on brokers with the higher quality loans and higher volume. At the time, the company told MortgageDaily.com that it was “redefining the wholesale business model to work with a smaller, targeted group of brokers.”
Then, last October, the O’Fallon, Mo.-based lender published a list of 840 mortgage brokers, correspondents and loan originators who cannot have anything to do with loans funded or purchased by CitiMortgage. The move was attributed to regular updates to its list.
Now, CitiMortgage is inviting some brokers back.
While a spokesman for the company indicated that no formal program is underway, he did acknowledge that the wholesale lender is restoring relationships with some brokers.
“We touch base with some former customers from time to time to consider the potential benefits of future relationships,” the statement said.
In June, Citigroup suspended its correspondent registrations — citing a number of quality control issues including appraisal documentation, HUD-1 closing statements and other verifications. But by the next month, correspondent originations resumed — with the company noting at the time that it had “re-engineered quality controls in our correspondent mortgage business.”