Citi to California Home Buyers: Just Say No

November 6, 2007 Posted in Finance and Lending, For What Its Worth, Real Estate News 

Times, they are a changin’ in the California mortgage business.

Last week we had Bank of America notify 7,000 mortgage brokers that their services will no longer be needed after New Years Eve, only to have Citi take it one step further on Halloween and tell California home buyers, "Thanks, but no thanks".

As of October 31, 2007, Citi is out of the purchase money lending biz in California. Clearly they think the ghosts and goblins that are haunting the real estate market are staying awhile longer.

Citi Home Equity

Urgent Policy Notification:

California Purchase Money Business

Effective Wednesday, October 31st 2007 Citi Home Equity will discontinue lending on all Purchase Money transactions for properties in California.

Impact to pipeline applications:

  • California Purchase Money applications that have received Conditional Approval or Final Approval will be honored
  • California Purchase Money applications that have not received any level of approval and are in process will be declined.
  • Operations will actively work the list of impacted applications

All other policies will continue to apply.

Note: Until our website is updated, brokers will have the ability to submit applications for Purchase Money transactions in California. These applications will be declined.

This Policy only affects applications where the subject property state is California.
 

So what’s it mean if a lender doesn’t want your business at any price?

Comments

6 Responses to “Citi to California Home Buyers: Just Say No”

  1. Charles Richey on November 8th, 2007 1:08 am

    I guess they know when to say when. First time for everything…..when a lender is turning away borrowers based on the state they live in.

  2. Bob on November 8th, 2007 8:28 am

    Last night a lender told me Nevada laid down the law to lenders about certain loans. Not sure which loan programs. If you know, drop a line here and let me know.

  3. Brian Brady on November 13th, 2007 4:59 pm

    Hey Bob,

    I think Citi Mortgage is still lending in California. Citi’s Home Equity product has been discontinued. That’s not unusual; Flagstar and National City have discontinued all second mortgages everywhere.

  4. Bob on November 13th, 2007 5:38 pm

    Brian, did you get anything from Citi? Does it look like Citi just put out a poorly worded memo that should have applied only to purchase money 2nds?

  5. Lehigh Acres on November 17th, 2007 12:20 am

    lenders have been threatening to do the same in the Cape Coral real estate market.

  6. Catherine Coy on February 2nd, 2008 3:23 am

    Yes, Citimortgage is still lending on FIRST trust deeds in California, with an adjustment to LTV of 5% in declining markets.

    Citi Home Equity (2nds) is different than Citimortgage (1sts).

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