CitiMortgage Won't Take New FHA Broker Registrations

The wholesale lending division of CitiMortgage is telling its current stable of loan brokers that it will not accept new registrations from third-party salesmen unless they've already been approved to do business with FHA. "Brokers that are currently approved and recertified by FHA for 2010 will retain that approval until December 31, 2010," the lender says in a new notice. FHA, of course, is getting out of the broker approval business, ceding oversight to the wholesalers that fund them and making the actual funder responsible for all broker-sourced loans. CitiMortgage has been whittling down its use of brokers for well over a year now. In 2009 it ranked 14th nationwide in table funding, according to figures compiled by the Quarterly Data Report. Its volume in the channel fell by 69%, the largest decline among a top 20 ranked originator. (For the full story see the weekly edition of National Mortgage News.)