Citi Wins Bid for ABN Amro Mortgage
Citigroup has agreed to purchase ABN Amro Mortgage Group, Ann Arbor, Mich., for an undisclosed sum, a purchase that will make it the nation's fourth-largest residential servicer, with $728 billion in receivables.The sale effectively removes AAMG -- once the nation's largest wholesale funder -- as a major player in mortgages. The sale includes the broker platform, InterFirst, and Mortgage.com. AAMG's parent, LaSalle Bank Corp., will continue to fund mortgages and home equity loans through its branch network. According to a statement issued by ABN, Citi will purchase $9 billion in net assets, $3 billion of which represents the value of ABN's $228 billion servicing portfolio. In November, National Mortgage News broke the news that ABN Amro was for sale. The deal is expected to close by the end of the first quarter. The companies can be found online at http://www.citigroup.com and http://www.abnamro.com.