CITIBANK EXITS WHOLESALE LENDING

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A few years ago Citibank did wholesale business with over 10,000 mortgage brokers nationwide. Somewhere in 2008 they slashed the number of brokers from 10,000 down to 1,000\. Only the top brokers with the cleanest business remained on their wholesale platform. I am very sad to say that on February 1st, 2012, Citibank notified the last of 1000 mortgage brokers that remained approved, and for that matter still in business that they have decided to exit wholesale lending. They have followed Bank of America, HSBC and a number of others with their decision. It’s a shame, they were a great bank, with great support nationwide. They will continue correspondent lending. This in the mortgage world just means that they will only take business from a banker who has a warehouse line of credit who can fund the loan with their own money themselves, also leaving that entity accountable in the event the loan cannot be bought on the secondary market.   All driving the price up for the consumer. Banks and Bankers make money on SRP and high back end payouts.  The cut off for submissions and locks through cheap wholesale channels is Thursday February 8th.  After that retail land it will be for those who want to stay with Citibank. Find me here: http://brownstoner.staging.wpengine.com/vanessathatcher