Tag Archives: Citigroup

According to a report from FOX Business, executives at Citi told reporters the company will cut an estimated 2,200 jobs from its mortgage business "by early next year" due to rising mortgage rates driving down demand. Meanwhile, Bloomberg has reported that Bank of America is cutting 2,100 jobs and closing 16 offices by the end of October, according to "two people with direct knowledge of the plan." Citi and BofA aren't the only banks to be impacted by rising interest rates and improved loan performance.

The mortgage servicing industry's efforts to adhere to nationwide reforms hasn't gone unnoticed by consumers, according to J.D. Power's 2013 U.S. Primary Mortgage Servicer Satisfaction Study.

As major lenders start releasing their second-quarter earnings reports, Fitch Ratings anticipates future filings will show the impact of higher interest rates on banks' mortgage earnings.

Citi also reported a 4 percent decline in retail banking revenues to $1.6 billion, "reflecting lower mortgage origination and servicing revenues."

Citigroup and Fannie Mae announced Monday an agreement to resolve future repurchase claims for breaches of representations of warranties on millions of loans originated between 2000 and 2012. As part of the agreement, Citi will pay Fannie Mae $968 million, "substantially all of which was covered" by the bank's existing mortgage repurchase reserves as of the end of the first quarter. The settlement covers 3.7 million first mortgage loans sold to the GSE.

The Federal Housing Finance Agency (FHFA) and Citigroup have reached a settlement over allegations of fraud in the selling of $3.5 billion of mortgage-backed securities.

After recently reporting predictions of declining originations, FBR Capital Markets & Co., now says the market looks a little brighter, and a resurgence of refinances through the Home Affordable Refinance Program (HARP) will contribute to originations volumes this year. While FBR maintains its prediction that origination volume will be lower than the volumes recorded in the second half of last year, the company now suggests originations "will largely be better than the 20-25 percent drop-off we projected late last week."

The story of the London Interbank Offered Rate (Libor) scandal added another chapter in March as Freddie Mac brought suit against Barclays, Bank of America, Citibank, and several other institutions for investment losses related to alleged rate-rigging practices.

Mortgage origination volume continued to climb in 2012, according to data from Mortgage Daily's 2012 Mortgage Lender Ranking. According to data collected from surveys, earnings filings, and other public disclosures, loan volume across all lending firms grew 30 percent annually in 2012. In the fourth quarter alone, Mortgage Daily reports residential originations coming in around 3 percent above third-quarter volume. Year-over-year, Q4 saw mortgage production grow 17 percent.

The servicers involved in last year's settlement have provided assistance in the amount of $45.83 billion to 550,000 homeowners, according to the Office of Mortgage Settlement Oversight.