Correspondent Lending Thaws at Citi
Citigroup (C) today takes its correspondent lending channel off of a temporary suspension. On June 23, Citi froze the business over "quality control" issues surrounding documentation of appraisals or income verification seen in -- or missing entirely from -- previous mortgages purchased from independent mortgage bankers and other originators through the channel. A Citi spokesperson confirmed to HousingWire the company finished re-engineering quality controls and will accept correspondent mortgage loan registrations "from select, qualified customers" beginning today. "We will phase in remaining customers over the next several weeks as we test and fine tune these processes," says Mark Rodgers, a spokesman at Citi. "This disciplined procedure will help ensure the delivery of high quality loans, which is in the best interests of our customers, our investors and our business." Write to Diana Golobay. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments.