Citi’s Mortgage Production Falls Over 50% in 4Q

Citigroupís mortgage origination volume in 4Q13 was over $8 billion, approximately 43% below 3Q13ís $15 billion and 51% below 4Q12ís $17 billion.

For the full year, the company did $58 million in volume.

Reduced mortgage refinancing activity was one of the reasons why Citigroupís 4Q13 revenues of nearly $18 million were 2% lower than the same period last year.

The companyís retail banking revenues declined 35% to $1.1 billion from the 4Q12, primarily reflecting the lower refi activity.

Residential first mortgage delinquencies dropped by 287 basis points from 4Q12 to 4.61%.

The third-party servicing portfolio is now $181 billion, up from $177 billion one year prior.

Citiís net income is $2.7 billion for the fourth quarter of 2013, more than double the $1.2 billion earned in 4Q12.

Prior to the earnings release, Citi said it signed a definitive agreement to sell to Fannie Mae $10 billion of mortgage servicing rights, including the majority of the delinquent loans it serviced for the government-sponsored enterprise. This is nearly 20% of all the 60-day or later delinquent mortgages serviced by CitiMortgage.

No other terms of the deal were released.

The deal resolved pending and future compensatory fee claims related to Citiís servicing practices on these loans.

The transfer will begin in the current quarter and continue until 3Q14.

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