CitiMortgage Breaking News: California Purchase Money Business

"Effective Wednesday, October 31st 2007 Citi Home Equity will discontinue lending on all Purchase Money transactions for properties in California."

By now you've all heard Citi Home Equity will halt all 'purchase' money 2nds in the State of California. If you haven't, please click here to read the full announcement.

Although we are sure individual AE's are not authorized to speak for the entire company, one suggested in confidence that Citi was concerned with the "...performance issues with certain loans on the books."

BREAKING NEWS: According to our sources, Citi will announce later today "Citimortgage Correspondent Lending Second Mortgages going away."

From a tip:

"You will receive offical 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..."

And further, "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 confirms 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.