Tags: mortgage | Citigroup | crisis | bank

Citigroup Planning to Expand US Mortgage Lending, Fraser Says

Tuesday, 20 May 2014 11:05 AM

Citigroup Inc. is seeking to reverse the contraction of its U.S. mortgage business, partly by increasing purchases of home loans from other firms, according to Jane Fraser, who oversees the lending.

“We want to grow,” Fraser, the head of U.S. consumer and commercial banking for Citigroup who also runs its home-loan unit, said today in a speech at a conference in New York. “We think today we are below our natural market share” based on the size of its banking business.

Citigroup’s portion of U.S. mortgage originations fell to 3.4 percent last year, when it ranked No. 6, after the company scaled back following losses and legal settlements amid the worst housing crash since the Great Depression, according to newsletter Inside Mortgage Finance. The New York-based bank’s market share was 8.1 percent at the end of 2007, when it ranked fourth.

The effort to expand Citigroup’s share of a market curbed by higher interest rates, consumer aversion to debt and new regulations will include a renewed focus on buying mortgages from correspondent lenders, Fraser said. It plans to use its balance sheet to hold loans as part of the push, she said.

While the bank will be “extremely careful” with the quality of its lending, “Citi is no longer reacting to the crisis,” Fraser said at the Mortgage Bankers Association conference. “It’s a strategy agreed to with our senior management and our board, and they’re comfortable with it.”

Fraser was named head of CitiMortgage in May 2013 after running the lender’s private bank for four years. Fraser, a former McKinsey & Co. consultant, joined Citigroup in 2004.

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Citigroup Inc. is seeking to reverse the contraction of its U.S. mortgage business, partly by increasing purchases of home loans from other firms, according to Jane Fraser.
mortgage, Citigroup, crisis, bank
267
2014-05-20
Tuesday, 20 May 2014 11:05 AM
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