Citigroup Sells Servicing to Fannie Mae on $10 Billion Loans
This article is for subscribers only.
Citigroup Inc., the third-largest U.S. lender, agreed to sell servicing rights for about 64,000 Fannie Mae residential first-mortgage loans as it seeks to reduce a portfolio of unwanted assets.
The contracts, held in the Citi Holdings unit, are tied to loans with about $10.3 billion in unpaid principal balances, the New York-based bank said today in a statement. Fannie Mae acquired the rights and will transfer the servicing of the loans to another firm, Andrew Wilson, a Fannie Mae spokesman, said in a phone interview. Terms weren’t specified.