Citi slims down mortgage biz

As part of its downsizing plan, the New York-based financial services giant will cut the number of outside mortgage brokers with whom it does business in the United States to around 1,000 from about 9,500.

Citigroup Inc. is slashing the size of its wholesale mortgage business.
As part of its downsizing plan, the New York-based financial services giant will cut the number of outside mortgage brokers with whom it does business in the United States to around 1,000 from about 9,500, Mark Rodgers, a Citigroup spokesman, said in an e-mail.
Additionally, New York-based Citigroup also will lay off 500 sales and operations employees in its CitiMortgage division.
The new model will be dependent on doing business with selected brokers and will utilize telesales and a smaller account executive footprint, said Mr. Rodgers.
The company also will consolidate its mortgage retail businesses in St. Louis, Dallas, and Southfield, Mich.
Citi’s offices in Southfield, Ann Arbor, Mich., and Denver will support targeted business initiatives, including refinancing portfolio loans and developing solutions for at risk customers to remain in their homes, the e-mail said.