Citigroup (C) will no longer originate new mortgages through its wholesale broker channels, the bank said Wednesday.

Citi originated $21.1 billion in new home loans in the fourth quarter, down 3% from the same period the year before.

In wholesale lending, mortgage brokers gather documentation and information on the borrower and pair him or her with a lender.

Correspondent lenders, which other major firms such as Bank of America (BAC) exited last year, are linked to a specific lender and have the authority to approve mortgages before sellling the loans to the institution.

Citi said it would be able to invest more resources to its correspondent and retail channels by exiting wholesale.

“Strategically, this move allows us to focus our attention and efforts on our retail and correspondent channels, which have the highest opportunity of increasing long-term engagement with our clients,” the bank said in a statement.

The bank will transition a majority of its employees within the broker channel to “similar roles within the business.”

jprior@housingwire.com

Most Popular Articles

Six reasons why agents should stop answering their phones – Seriously!

This column is for you if “even the mere thought of not answering your phone makes you start huffing into a brown paper bag,” HousingWire Columnist Dustin Brohm writes.

Jan 24, 2020 By

Latest Articles

The end of the mortgage refi boom?

The refinancing share of mortgage originations in December fell to 46%, the lowest since August’s 43%, according to Ellie Mae.

Jan 28, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please