Citigroup Shuts Down Future Mortgages
- Date: 2008-06-22 - Word Count: 254
Share This!
American bank Citigroup has announced that it will be removing itself from the British mortgage market, closing down its mortgage division, Future Mortgages and CitiFinancial, its unsecured loans department.
The bank currently has 92,000 customers, the majority of which are sub-prime customers, customers with poor credit history or high risk borrowers. Those customers will continue to be serviced by Citigroup on their current terms in other divisions of the bank.
The move will result in the loss of 700 jobs as call centres and branches across the country are closed. The bank has suggested that some of those employees may be offered jobs in other divisions.
Future Mortgages specialised in providing both first and second mortgages to sub-prime customers and was a leader in the market. Darren Cook, of the Moneyfacts website, said: "This is another blow for the sub-prime market."
Bert Pijls, Citigroup's business manager for UK lending said that CitiFinancial and Future Mortgages had not been identified as areas for growth and were consequently being shut down. He said the bank would focusing on the Citi and Egg brands instead.
Citigroup is according to certain data, the largest bank in the world. As it lends primarily to sub-prime borrowers, it has been hit hard by the credit crunch and defaulting customers.
In the United States, Citigroup was one of the worst hit lenders by the sub-prime implosion which has been taking place. As a result, Charles Prince, chief executive was let go and his successor Vikram Pandit has announced plans to cut at least 9,000 jobs.
The bank currently has 92,000 customers, the majority of which are sub-prime customers, customers with poor credit history or high risk borrowers. Those customers will continue to be serviced by Citigroup on their current terms in other divisions of the bank.
The move will result in the loss of 700 jobs as call centres and branches across the country are closed. The bank has suggested that some of those employees may be offered jobs in other divisions.
Future Mortgages specialised in providing both first and second mortgages to sub-prime customers and was a leader in the market. Darren Cook, of the Moneyfacts website, said: "This is another blow for the sub-prime market."
Bert Pijls, Citigroup's business manager for UK lending said that CitiFinancial and Future Mortgages had not been identified as areas for growth and were consequently being shut down. He said the bank would focusing on the Citi and Egg brands instead.
Citigroup is according to certain data, the largest bank in the world. As it lends primarily to sub-prime borrowers, it has been hit hard by the credit crunch and defaulting customers.
In the United States, Citigroup was one of the worst hit lenders by the sub-prime implosion which has been taking place. As a result, Charles Prince, chief executive was let go and his successor Vikram Pandit has announced plans to cut at least 9,000 jobs.
Related Tags: credit, mortgages, borrowers
Carys is an author of several articles pertaining to Mortgages. He is known for his expertise on the subject and on other Business and Finance related articles. Your Article Search Directory : Find in Articles
Recent articles in this category:
- Understand The Fha Guidelines Before Considering Fha Mortgage
The U.S. economy was hit hard by the global financial meltdown. In the housing sector, the crisis is - Basic Facts About Multifamily Apartment Construction Loans
When you make an investment, you surely think of getting something out of it to make the deal profit - Commercial Mortgage Refinance Loan - Ideal Solution For Financial Problems
Financial security is something which we have to plan from before. In life, there is no certainty wh - Free Government Grant Money Eligibility Requirements
All of us hear about free government grant money. But what is involved in obtaining this money? What - Top 10 Tips On Buy To Let Mortgages And Property Hunting
If you are looking for an opportunity to invest your savings or any money you have come into, there - A Few Tips On How To Stop Foreclosure
In case you are facing certain financial catastrophe caused by a loss or relocation of a job, or wha - How To Stop Foreclosure And Lose Your Residence To The Bank
In today's market, there are more and more citizens that get big loans then they use their home as a - Most Excellent Way To Stop Foreclosure - The #1 Blueprint For Saving Your Home
Just what is the best measure to stop foreclosure? No doubt you are browsing for an answer to that q - Act Fast To Stop Foreclosure
If you would like to find out how you can put a stop to foreclosure, there is not much to accomplish - Tips For Buying A Home With No Money
There is a popular belief that you can only buy a home if you have great credit. This is false becau
Most viewed articles in this category:
- Mortgage Refinancing - Rate Caps Protect You When Refinancing With an Adjustable Rate Mortgage
Adjustable Rate Mortgages can save you money when mortgage refinancing if you fully understand how t - 100% Mortgage Loans: What You Need to Know
Coming up with a 20% down payment can be a difficult task for many potential homebuyers. If you are - Home Equity Loan Pitfalls
The home equity loan came of age in 1996 when changes in the tax law eliminated deductions for the i - Mortgage Refinancing: How the Fannie Mae Weekly Yield can Help You Comparison Shop
Mortgage refinancing without knowing Fannie Mae's weekly yield is like buying a used car without kno - How to Pay Off Your Mortgage in 7 Years, Without Extra Payments
One of the most exciting new topics concerning wealth is “How to Pay Off Your Mortgage in - Mortgage Rate Comparison
Trying to get an "apples to apples" mortgage rate comparison can often be quite a hassle. Traditiona - Should I Pay Off My Mortgage Early?
Many people think that real estate debt is good debt. They think that their mortgage is their bigges - Mortgage Refinancing: Beware the Mortgage Vultures
If you are in the process of mortgage refinancing you need to be wary of overpaying for your loan. - Mortage Loans - How Much Does It Actually Cost In The End
Mortgage loans are the loans used to finance most people's first home. It is the big loan that ever - Where To Locate Home Improvement Loan Companies
Where to locate home improvement companies is a question that arises from many different people. Som
