Mortgage Daily Logo
mortgage news from industry experts

Slump in Citi’s Home Lending Might Continue Into Q4

Citigroup Inc. failed to push past its prior-period mortgage production. In fact, a forward-looking indicator points to even less lending in the current quarter.

According to data in its earnings report, the New York-based financial services firm funded $7.5 billion in residential loans from July 1 through Sept. 30.

The latest activity fell short of second-quarter volume at $8.8 billion.

Yet, the New York-based financier bested the $7.1 billion in mortgages originated during the third-quarter 2014.

For the first three quarters this year, residential lending activity came to $23.3 billion.

Salable mortgage rate locks dropped to $3.9 billion from $5.0 billion in the second quarter — indicating that loan production could be worse in the final quarter of this year.

At the end of last month, Citi serviced $162.6 billion mortgage for third parties. Servicing was down from $165.0 billion as of June 30 and $173.0 billion as of Sept. 30, 2014.

Citi’s residential investment portfolio increased to $40.6 billion from $38.9 billion at the end of June and $37.6 billion at the end of September a year ago.

Thirty-day delinquency was unchanged from 0.68 percent at the end of June. On a year-over-year basis, however, delinquency was 27 basis points better.

As of Sept. 30, Citi Holdings’ third-party servicing portfolio was $36.4 billion, off from $39.2 billion accounted for at the end of June. The latest portfolio was even leaner compared to $56.0 billion at the same point last year.

On the balance sheet, Citi Holdings’ residential assets narrowed to $47.9 billion from $51.3 billion at the second-quarter’s close and $63.4 billion at the same point in 2014.

The most-recent assets consisted of $21.5 billion in home-equity loans and $26.4 billion in first mortgages.

At 5.53 percent, the 30-day or more delinquency rate on Citi Holding’s mortgage portfolio worsened by 32 BPS compared to the June-end rate. But the latest rate did manage a 64-basis-point improvement over last year’s third-quarter end rate.

Income from continuing operations before taxes fell $0.7 billion from the second-quarter 2015 to $6.2 billion at the holding-company level. Still, income rose above the downwardly revised third-quarter 2014 earnings of $5.0 billion.

Company-wide, Citi’s staffing increased by a thousand from the upwardly revised second-quarter number to 239,000 as of Sept. 30.

Citi claimed 4,000 fewer employees than at the end of September 2014.

North American branches in the global consumer banking division held steady at 779, the same amount accounted for as of June 30.

Citi Holdings claimed 272 North American branches — one location less than claimed at the end of the second quarter.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION