Citi is, reportedly, planning to cut 950 jobs in its default mortgage service divisions across the country, as part of its effort to consolidate the business.
The move by Citi came after it decided to sell servicing rights of around 64,000 residential first-mortgage loans back to Fannie Mae.
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The Fannie Mae residential first-mortgage loans had an unpaid balance of approximately $10.3bn, according to Citi.
Citigroup spokesman, Mark Rodgers, said the job cuts include 200 in Fort Mill, South Carolina, and about 50 in Hagerstown, Maryland.
According to a person familiar with Citi’s plan said the remaining 600 job cuts may occur by year-end in Hagerstown, with another 180 in Fort Mill.
Rodgers said affected employees will be allowed to apply for other jobs in the bank and will be offered severance if unable to find jobs.
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By GlobalData"Decisions are never easy when we are dealing with job actions like this but we have to respond to industry conditions and needs," Rodgers added.
