Citibank breakup:Who is gonna own my house?

[thrombus29]

So I have my main mortgage and HELOC through Citimortgage, and because of this I get free checking and some other services that it would burn my ass to have to pay for. If all that stuff wasn't free I would switch to a more convient bank.

With the upcoming break up, is Citibank going to split all of it's mortgage business off, or just try to get rid of it's crappy paper? (I have a fixed rate and perfect payment history, so would I be kept in?)

 

[CriticalThanking]

Thrombus,

Your loan could be sold at any time, regardless of your loan type and payment history. Yes, crap paper is what they would like to get rid of first, but they often package good with bad. Who would buy a portfolio of just bad loans? That is just the way many lenders work. If they sell your loan, they have more money freed up for new lending (or big executive bonuses ).

Please be aware that HELOCs are changing. Some companies are introducing new fees, such as non-use fees. Other mortgage holders are cutting you off (or seriously reducing your limit) if your property has has reduced in value by a particular percentage (or worse, to below the loan amount). Can you survive without the HELOC?

CT

 

[AtomicMysteryMonster]

How will the breakup be effecting student loans handled through Citibank?

 

[thrombus29]

Thanks for the answer,

I understand that the loan could be re-sold at any time (My initial mortgage was a 13.6% liars loan that I got through Homeside who sold it to WaMu, I did a refinance and Citi got it at 5.70% when I could show some legal income) The HELOC is maxed out and locked at Prime. Between the two loans I have conservatively about 50% equity.

What I want to know is that when Citibank breaks up, will I still get the perks from CitiBANK because of my business with CitiMORTGAGE. Will Citimortgage be spun off to sell off all its debt, or just its sub prime stuff?

I would switch my banking business to the bank in town my wife's boss (who doesn’t have Direct Deposit) uses out of convenience instead of driving 15 miles to the Citibank, If I had to pay for checks and services.