Jan 15 Citigroup Inc said that it will sell mortgage servicing rights of $10.3 billion Fannie Mae residential first mortgage loans as the bank looks to reduce its assets and expenses within Citi Holdings.
Citi Holdings houses the portfolio of troubled mortgage assets that the third-largest U.S. bank is winding down after they led to huge losses since the financial crisis.
The sale of about 64,000 loans includes most of the delinquent loans serviced by CitiMortgage for Fannie Mae, and it represents about 20 percent of the total loans serviced by CitiMortgage that are 60 days or more past due.
Both the parties have resolved pending and future compensatory fee claims related to Citi's servicing practices on the delinquent loans, the bank said in a statement.
The transfer of servicing will start in the first quarter and continue into the third quarter of 2014.