Bloomberg: Citi’s Correspondent Division Suspends Applications Following QC Review

Posted by Orb Staff on June 24, 2009 No Comments
Categories : Residential Mortgage

oup Inc. has suspended accepting loan applications within its correspondent lending division after a review uncovered that appraisal and income-verification documents were missing from loan files, [link=][u]Bloomberg[/u][/link] reports. Citing a letter sent from Citigroup to its independent mortgage banking clients, Bloomberg says the division stopped taking new applications at the end of business Tuesday. The division will resume accepting new loans July 6. "There remain key areas that fall short of our quality control process," reads the letter, which is signed by the correspondent division's managing director, Brad Brunts. "We ask you to review your processes and join us in this effort to collectively address these areas of concern." A Citigroup spokesperson confirmed the suspension but declined to disclose how many loans were missing documentation. Brunts' letter, dated June 22, notes ‘insufficient/lacking’ valuation methods and ‘income calculation errors,’ among other omissions, Bloomberg reports. SOURCE: Bl

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