Citigroup disclosed plans Thursday to reduce its on-balance-sheet mortgage holdings by $45 billion over the next year, or 20% of its total portfolio. Officials in Citi's mortgage division told MortgageWire that it will not be selling loans per se, but instead will try to achieve the reduction through normal portfolio runoff. Citi also clarified that it will remain a retail, wholesale, and correspondent lender but will no longer buy mortgages in bulk packages. "We will buy only on a flow basis," said one company executive. Citi is also reorganizing and will place all its lending-related divisions under CitiMortgage in O'Fallon, Mo., a company managed by Bill Beckmann. (For full details, see the March 10 issue of National Mortgage News.)
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