Citigroup seeks mortgage growth
Citigroup is expanding its correspondent lending business, as the bank appears to be re-embracing home lending as the US economy's recovery inches forward. It was reported on Friday that Citigroup was reversing its original plans to scale back the home lending business, by increasing its purchase of home mortgages and by keeping more loans on its balance sheet. Citigroup, in an e-mailed statement late Friday, said the move is not a shift in strategy. The company is "committed to growing our mortgage business with a focus on quality and long-term sustainability," a spokeswoman said. Citigroup has "reengineered quality controls to be best in class and are looking to grow the correspondent channel, in a controlled, deliberate manner, with high-quality lenders who provide superior quality loans," the statement said. "This expansion is an important step to ensuring the foundation for future success is in place."