Citigroup Moving to Higher Credit Quality

$24.0 billion 1st quarter production
By MortgageDaily.com staff
4/15/2005

As production fell at CitiMortgage, the company's parent announced the quality on its North American consumer portfolio has tightened.

Prime home finance originations during the first quarter were $24.0 billion, according to parent company Citigroup Inc.'s earnings report released today.

Production fell from the fourth quarter's $25.0 billion, Citigroup said, but was 9% higher than a year ago.

The third party mortgage servicing portfolio fell to $288.8 billion at the end of the first quarter, according to the announcement, off from $291.3 billion at the prior quarter's end.

Earnings for the international financial services company were a record $5.44 billion, the New York-based company reported -- reflecting a $109 million after-tax loss on the sale of manufactured housing loans.

Citigroup noted that increased revenues at its North American consumer finance operations were "offset by a 46 basis point decline in net interest margin. Spread compression was due to increased risk-based pricing and the repositioning of portfolios toward higher credit quality."

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