CitiGroup is said to be in talks to sell their mortgage unit, Citi Property Investors, which owns property in the U.S., Asia, and Europe. This sale could be a result from the losses reported for 2009 and as part of CitiGroup’s work to rebuild after the recession did a lot of damage to the company.
The specifics, details, or even the buyer of Citi Property Investors is not yet known but many see this move as a good idea on the part of CitiGroup as the financial institution has been, like many other lenders, having troubles with defaults from things like mortgages and credit cards.
Also, reports as to why CitiGroup posted a loss for last year range from using profits to pay employees to repaying bailout money, or a combination of factors, but the result is CitiGroup has lost value in the aftermath of the recession.
However, in the area of home loan mortgage modifications and CitiGroup’s participation in the Making Home Affordable Program, CitiGroup has been putting up some of the best numbers in terms of home loan modified than any other big lender.
Hopefully, with the sale of Citi Property Investors, enough capital will be gained to allow CitiGroup to begin 2010 on a positive note, possibly report first quarter profits, and regain some of their value that was lost due to the recession.