I thought I would share this with you. I can’t substantiate this at all but thought I would mention it and I would suggest that it very likely does not mean anything at all (you should treat it as such).
Is Citibank Not Issuing Loans or Loan Documents?
One of the transactions I am working on is late to close escrow. This has largely rested on the lender processing the loan and it being late is very common right now, unfortunately. However, today’s update took a different turn. I was told by a mortgage broker that the lender in this case isn’t issuing docs and that the broker put the loan file to another lender to get this other lender to fund given the delay with the first lender.
The mortgage broker told me that the first lender is Citibank and that they are going under – that they can’t keep up with their obligations given the market and the money invested or given to them by the U.S. government. The broker believed that Citibank was going the way of GM in the next couple of weeks.
Now, I haven’t heard any such thing though I don’t watch the gyrations of Citibank with any particular regularity. I just thought it interesting. However, you hear all kinds of things in this business and I can tell you that one thing I have learned is that this industry can surprise you and it usually moves in a direction that no one anticipates.
Citibank Aside, I Just Care About the Client
The most important information I need when confronted by this is whether this will get done or not. My focus is on my client. This isn’t about Citibank and its viability or lack thereof because every other economist has probably predicted this a hundred times over in the past year with the other half saying the opposite. The transaction is not about Citibank but instead, it’s about the clients and what happens.
This is about, “wil the deal get funded so we can close on this and make everyone happy?” The buyer and seller want to conclude the deal and have done everything they could to get to this point. Luckily, I did feel that the mortgage broker felt the urgency to get this done so that the buyers could move into their new home and the sellers could move on to other things.
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