Citimortgage Correspondent (2nds) - Correspondent 2nd Mortgages
2007-11-05
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stories: consumermortgagereports.com
"According to our sources, Citimortgage will announce later today Correspondent Lending Second Mortgages going away."
This was the headline we published in our Premium Members Newsletter on October 31, 2007. This is now confirmed on their web site.
We agonized (for 3 minutes straight) about imploding Citifinancial. Mainly because they are still in business. Yes, they are obviously ailing. Yes, they make the news about every two hours. But we feel an obligation to report the implosion of the parts. Their Correspondent Second Mortgages account for greater production figures annually than some of the other Lenders on this list produced in their lifetime across all programs! It's possible that a number of major programs will disappear, and based upon the volumes moved by this one company, they could be the trendsetter for the industry, like a domino effect. So we will account for them.From a tip:
"You will receive official notice, however due to the short window I wanted to give you a heads up. Please make sure any seconds that you are working on or are in your pipeline are locked by tommorrow - November 1 2007... These seconds must be purchased by Citimortgage by December 31, 2007. "
We called the party who put out this email, and he confirmed he worked for Citimortgage. He asked us to call the Head office saying he 'did not feel comfortable discussing it outside of his client base."
After reciting the information we were aware of, Citimortgage confirmed by telephone an announcement on this subject "will go out to all branches and concerned parties this afternoon" (10-31-07) and they in turn would notify their business partners by the end of the day.
We are attempting to gather additional information regarding their loan volume, and if there have been any layoffs planned. Should you have any such data, or wish to comment on this article, please contact us.
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.