Blown Mortgage

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Citi, which just eliminated its wholesale home equity division continues with the changes; announcing the consolidation of Citi Residential Lending with the CitiMortgage unit. In an email to staff today Citi leadership announced that staff reductions would be imminent in the consolidation.

Here’s a clip of the email:

As part of the next phase in creating an end-to-end U.S. residential mortgage business, we previously shared that the collective residential real estate businesses would operate under the CitiMortgage banner. To support this strategy and current market realities, a key element is the coming together of Citi Residential Lending and CitiMortgage. Today, we are announcing high-level details of this integration, which will allow us to maintain our capability and expertise and leverage them to grow as market conditions improve. Specifically, the business alignment for the combined organization will be as follows.

The Citi Residential sales organization, under the leadership of Joe Amoroso, will report to the CitiMortgage Wholesale organization under John Hummel, reporting to Fred Bolstad, Managing Director of CitiMortgage Wholesale Lending. The combined sales organizations will be reduced to a level to support current market conditions.

As Citi regroups to meet market challenges expect a lot of news from competitors trying to do the same to make it through the wilderness.

Update: Here’s the email communication to brokers:

Today CitiMortgage and Citi Residential Lending announced the coming together of the businesses under the CitiMortgage brand. Ultimately, you will have one Citi point of contact, and as a team we’ll be better positioned to meet your needs. Additionally, through this integration, we’ll now have a dedicated focus on expanded lending product sales.

Additional detail, including program descriptions, requirements and policies will be provided in the coming weeks. At a high level, effective with registrations in May, expanded products will be available via the CitiMortgage Broker Web site https://broker.citimortgage.com to all Citi Residential brokers who have signed and returned a CitiMortgage Broker Agreement.

For current Citi Residential Lending customers, please also expect to receive information on becoming approved as a CitiMortgage broker. Until we provide more specific details and timing around this integration, please continue to process your loans as you do today.

The combination of CitiMortgage and Citi Residential Lending is designed to better serve your wholesale lending needs by offering expanded lending products through a single investor. When integrated, processing of the expanded lending/non-prime production will be handled through CitiMortgage’s operations platform.

As always, please contact your respective Account Executive if you have any questions and thank you for your continued business.

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