CitiMortgage Cuts Wholesale Jobs, But Remains Committed

June 18, 2008 No Comments »

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CitiMortgage released a memo to mortgage brokers yesterday, announcing that it had made some organizational changes in its wholesale lending department, but said it’s still committed to the business.

The layoffs seemed to be mainly concentrated in the company’s sales force, which is now made up of less than 300 Account Executives nationwide, according to Managing Director Fred Bolstad.

Although, I’ve also heard that lower level management jobs were cut as a result of yesterday’s action, and when production goes, often support goes with it.

The so-called “realignment of territories” will see the loss of an unknown number of Account Executives throughout the U.S., assigning remaining AEs with existing brokers who lost their old reps as a result of the layoffs.

Back in March, the bank and mortgage lender announced that it would consolidate all its mortgage brands under one name, while reducing “staffing levels that reflect market and economic realities.”

Two weeks later, the company revealed that it had pulled the plug on wholesale home equity lending, resulting in hundreds of layoffs.

Yesterday’s news comes as little surprise, considering the fact that the company said it would concentrate more on higher quality loans and agency-backed lending, with a direct-to-consumer focus.

Just yesterday, AIG’s Wilmington Finance scrapped wholesale lending entirely, leaving very few major players in this space.

Take a look at the most recent mortgage layoffs, lender closures, mergers, rumors, and more.

(photo: eschipul)

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