Citifinancial Forms New Subsidiary - CitiFinancial Mortgage Company

Business Wire, Dec 7, 1999

BALTIMORE, Md.--(BUSINESS WIRE)--Dec. 7, 1999--

CitiFinancial Credit Company, the Baltimore-based consumer-lending subsidiary of Citigroup Inc., today announced the formation of a new subsidiary -- CitiFinancial Mortgage Company.

CitiFinancial Mortgage's primary focus will be to provide flexible, affordable credit for non-conforming mortgage customers, on both a flow and bulk basis, through a nationwide network of correspondents and mortgage loan brokers. It assumed certain assets from the IMC Mortgage Company. These included mortgage servicing rights to an approximately $7 billion portfolio; fixed assets; the assumption of the leased facilities in New Jersey, Ohio and Pennsylvania; and its loan servicing system.

CitiFinancial Mortgage Company, an indirectly wholly owned subsidiary of Citigroup Inc., will be headquartered in Tampa, Florida. It has hired more than 600 former IMC employees in Tampa and elsewhere.

CitiFinancial Mortgage draws on a familiar brand name with well-established equity and a strong tradition of service. Chief Executive Officer Harry Goff, a CitiFinancial Credit Company executive, heads the seasoned management. Key members of the management team include Tom Middleton, president; Stuart Marvin, chief financial officer; Timothy Griffin, chief credit officer; and Richard Kile, executive vice president for U.S, production. Messieurs. Middleton, Marvin, and Griffin were previously executives at IMC. Mr. Kile currently heads the wholesale lending division at Travelers Bank & Trust, fsb, a subsidiary of CitiFinancial Credit Company.

CitiFinancial Mortgage's impressive credentials extend beyond the familiar Citi name. With the funding strength of its corporate parent, CitiFinancial Mortgage is one of the new well-capitalized firms in the non-conforming home equity marketplace. Drawing on the knowledge and experience of CitiFinancial Credit Company, its competitive edge lies in the ability to be flexible in product offerings and underwriting guidelines, enabling a prompt response to new trends and evolving markets.

Commenting on the company's launch, Mr. Goff said, "This new business is the latest in a series of initiatives that successfully leverages corporate synergies within the Citigroup family. This venture will create new business opportunities utilizing CitiFinancial Credit Company's proven lending policies and capital management philosophies."

"Being part of the Citigroup family provides us with many new and exciting possibilities. Backed by the strength and scope of one of the world's largest financial services companies, CitiFinancial Mortgage Company is uniquely positioned to meet the demands and expectations of the non-conforming mortgage lending market," said Mr. Middleton. "The potential in terms of growth and services is enormous and when coupled with the knowledge and experience of our staff, I believe that CitiFinancial Mortgage employees will have a tremendous opportunity to build the ultimate customer service organization."

The sales and loan processing organization of CitiFinancial Mortgage will retain many of the structural components featured in the former IMC network. "Our loan production capacity is a unique blend of strength and experience in sales personnel combined with excellent loan processing capacity via a network of regionally located hub operations," said Mr. Kile. This infrastructure positions us to immediately take advantage of business opportunities arising from both inside and outside the Citigroup family."

Citigroup (NYSE: C), the most global financial services company, provides some 100 million consumers, corporations, governments and institutions in 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. The 1998 merger of Citicorp and Travelers Group brought together such brand names as Citibank, Travelers, Salomon Smith Barney, Commercial Credit (now named CitiFinancial) and Primerica under Citigroup's trademark red umbrella. Additional information can be found at: www.citigroup.com.