Citigroup Inc. has become the latest large bank to back away from the crumbling mortgage industry, slashing the number of outside mortgage brokers it does business with and cutting 500 related jobs.
Citigroup Inc. ... is cutting back on its wholesale mortgage business as part of a restructuring plan announced Tuesday.
A Citigroup spokesman stressed that the firm is not abandoning the wholesale mortgage business, but is "redefining" it.
Citigroup will cut the number of outside mortgage brokers it does business with around the U.S. to 1,000 from about 9,500. The plan also involves laying off roughly 500 sales and operations employees. ...
A number of banks have abandoned the wholesale mortgage business, as the industry has collapsed as borrowers defaulted and related financial instruments crumbled, setting off a domino-like effect throughout the financial-services industry.
Wednesday, October 08, 2008
Citigroup slashing mortgage business