CitiMortgage Inc. is blacklisting mortgage brokers and mortgage banking correspondents.
In bulletin #09 issued Wednesday, the Citigroup Inc. subsidiary said it is instituting a list of brokers, correspondents and originators whose files are not acceptable.
The list is effective on all loan registrations dated Oct. 15 or later. If a third-party originator is not on the list when the loan is registered but is added to the list before the loan closes, Citi will not purchase the loan.
“We will refuse for purchase and return to you any loan originated by an ineligible originator,” Citi stated. “Our decision with respect to any such loan will be final; and no exceptions will be considered.”
The O’Fallon, Mo,-based lender noted that the list changes regularly.
A Citigroup spokesman was not immediately available to comment, but in June it suspended correspondent registrations — citing a number of quality control issues including appraisal documentation, HUD-1 closing statements and other verifications.
On July 6, correspondent originations resumed. Citi noted at the time that it had “re-engineered quality controls in our correspondent mortgage business and have begun taking registrations from select, qualified customers.”