Citibank Mortgage Completes Acquisition of Source One Mortgage Services.ST. LOUIS--(BUSINESS WIRE)--May 3, 1999-- Purchase Vaults Citigroup Unit into Top Tier of Mortgage Lenders Citibank Mortgage, the St. Louis-based mortgage banking business of Citigroup, announced today that it has completed its previously announced acquisition of all of the assets and assumption of certain liabilities of Source One Mortgage Corporation. The purchase makes Citibank Mortgage the ninth largest mortgage originator and 11th largest mortgage servicer in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , based on 1998 figures and industry rankings. "The combination of Citibank Mortgage and Source One establishes a strong new player in the top tier of lenders," said David Lowman, Citibank Mortgage's president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "Together, we offer a comprehensive spectrum of products and services that fit the individual needs of homeowners and prospective homeowners. In addition, our strong financial base provides us with the resources necessary to build this business for the future." In 1998, Citibank Mortgage and Source One originated mortgage loans totaling more than $27 billion, and serviced or sub-serviced a $70 billion portfolio with nearly 900,000 accounts as of December 31, 1998. Source One has an established presence and expertise with low- to moderate-income borrowers, which Citigroup views as an important customer segment. With this acquisition Citigroup will broaden its product line significantly, underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. its commitment to those communities where it does business, and dramatically expand its retail presence via Source One's existing network of approximately 160 sales offices, 300 brokers and 200 correspondents. "Both Citibank Mortgage and Source One have strong retail, correspondent and broker origination channels, and excellent experience with conventional loans," says Mr. Lowman. "Citibank Mortgage also brings an expertise in originating Jumbo loans Jumbo Loan Any residential or commercial mortgage with a loan amount exceeding the guidelines of Fannie Mae and Freddie Mac. Notes: Rates tend to be slightly higher on jumbo loans because lenders generally have a higher risk. and portfolio products as well as alternative retail channels, including corporate relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. and direct to consumer sales. Source One, on the other hand, has been one of the nation's leading FHA/VA lenders. This capability will allow Citibank Mortgage to better serve low to moderate income and first-time homeowners. The two operations complement one another extremely well with very little overlap." Source One is based in Farmington Hills Far·ming·ton Hills A city of southeast Michigan, an industrial suburb of Detroit. Population: 81,400. , Mich., and operates a nationwide network of retail lending offices. The company also has a sub-prime lending unit based in Poughkeepsie, N.Y. and a Sacramento, Calif.-based subsidiary, Central Pacific Mortgage. Citibank Mortgage is part of Citigroup, the world's most global financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. organization. Citigroup's consumer businesses cover a broad range of financial services in 57 countries - retail and private banking, credit and charge cards, mortgage lending, consumer lending Consumer lending or consumer loans refers to any type of loan product that is not a mortgage; such as a car, boat, manufactured home, home equity loan, home equity line of credit, signature loan, signature line of credit, recreational vehicle, or Certificate of Deposit loans. , personal financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against , personal insurance and investment brokerage and counseling. These services are marketed through Citibank, Commercial Credit, Primerica, Travelers Life & Annuity and Travelers Property Casualty. Together, these consumer businesses earned $2.8 billion in 1998, representing 58 percent of Citigroup's core business income. |
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