Citi to Sell or Close FCS

Citigroup, decimated by billions of dollars in writedowns on subprime assets, has decided to sell or close its warehouse lending division, First Collateral Services of Concord, Calif., MortgageWire has learned. The company has contacted investment bankers about selling the operation, said a source, but so far no official offering book has been circulated. Citigroup did not make a public announcement on FCS but confirmed to MW that it will close the unit unless it finds a buyer. (For the full story see the Monday, February 4 issue of National Mortgage News.)