CitiMortgage Making Huge Cuts in Wholesale/Broker Network

CitiMortgage, the nation's fourth largest residential wholesaler, is making deep cuts in its table funding unit, cutting 500 account executive jobs, and slashing its broker network to 1,000 from a current head count of 9,500. A company spokesman confirmed the cuts to MortgageWire on Wednesday. He said most of the AEs being cut "are work at home work positions." He added that CitiMortgage, which table funded $6.4 billion in home mortgages in the second quarter, will continue to use brokers in all loan markets. "There are no areas we are avoiding," he said. He stressed that CitiMortgage, which is based in O'Fallon, Mo., is not exiting the wholesale arena. Over the past year dozens of lenders have ceased using loan brokers entirely including, IndyMac (now a ward of the government), National City, Wachovia, Washington Mutual, and others.