Citi Mortgage has officially bit the dust no different than all of the other lenders like Indy Mac Bank. Citi Mortgage Group Bank has failed just like all the the other failed banking institutions in helping families build the American dream.
A true tell tale sign whether a banking institution is in major financial trouble and my be the next buy out is when the bank closes a low risk profit center like their construction loan department.
Construction loans are the back bone and a key strength indicator of not only the bank but of the entire economy and since most large national banks have mostly closed down their construction loan departments nationwide the economy is definitely in unforeseeable trouble.
Where will the American family turn to in obtaining financing to build their dream home over the the next couple of years? Do these families that want to build their dream home have poor credit risk? Do they not bring enough equity or down payment to the table? Do these families have low liquid assets in their bank accounts to protect the risk of any default? Are these loan requests stated income loans?
The answer to all the above questions is almost always no and by all means may be the least riskiest loan request in the entire mortgage industry today. So CitiGroup has dropped the ball big time and failed just like Chase, Indy Mac Bank, Flagstar, First Horizon, National City and a whole lot of other banks that sold out the American public and the entire mortgage industry.
The only reason I believe this has happened was to protect the Ceo’s golden parachute payoffs.
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