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Citi's Liar Loan Division To Take 2 Week Break

Citi's correspondent lending division, which produced $58.5 billion in mortgages last year and probably had a hand in the $28 billion in losses last year, recently sent out a letter to clients notifying them that the unit is shutting down their well oiled machine for two weeks to look into some mortgage applications that didn't meet their lofty quality control standards.

According to the June 22 letter, the review identified "valuation concerns" where "appraisal documentation is missing or incomplete," or where property-assessment methods were "insufficient/lacking."
Other missing information included employment confirmations, phone numbers, credit reports and rent verification, the letter said. The review also found "income calculation errors."

Citigroup Halts Some Mortgage Applications, Cites Missing Data [Bloomberg]