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.