Citigroup to Acquire ABN AMRO Mortgage Group
Transaction Adds Scale to Citigroup’s Mortgage Franchise, Increasing Its Wholesale Salesforce and Enhancing Its Position as a Leading Mortgage Lender and Servicer
NEW YORK--(BUSINESS WIRE)--Citigroup announced today that it will acquire ABN AMRO Mortgage Group (AAMG), a national originator and servicer of prime residential mortgage loans. Citigroup will purchase approximately $9 billion in net assets and ABN AMRO Mortgage Group’s approximately $224 billion mortgage servicing portfolio. ABN AMRO Mortgage Group’s primary originations business is via wholesale lending under the InterFirst brand. ABN AMRO Mortgage Group is a subsidiary of LaSalle Bank Corporation and ABN AMRO Bank N.V. and is headquartered in Ann Arbor, Michigan. Terms of the transaction were not disclosed.
“This compelling transaction will enable us to serve more customers better and will allow us to deliver greater efficiencies through combined product, service and leading-edge technology platforms”
Carl Levinson, President and Chief Executive Officer of Citigroup’s Consumer Lending Group, said, "The acquisition of ABN AMRO Mortgage Group demonstrates our commitment to grow our consumer lending business in the U.S. As a best-in-class provider and servicer of residential mortgages, we will be able to provide ABN AMRO Mortgage Group’s customers with an expanded suite of products while increasing our distribution channels in new and existing markets.”
The acquisition of ABN AMRO Mortgage Group will add approximately 1.5 million servicing customers to CitiMortgage, Inc.’s portfolio as well as 2,500 wholesale brokers to its wholesale lending business. When combined with CitiMortgage’s strong market presence, the combined company will move from number five to number four in mortgage loan servicing and strengthen CitiMortgage’s number three market position in originations, based on third quarter 2006 numbers.
"This compelling transaction will enable us to serve more customers better and will allow us to deliver greater efficiencies through combined product, service and leading-edge technology platforms," said Bill Beckmann, President of CitiMortgage. "ABN AMRO Mortgage Group has a leading wholesale originations franchise, a strong and active broker network and an excellent loan servicing business, which will complement our continued growth in all channels -- Retail, Correspondent and Wholesale. We look forward to delivering a wide array of outstanding products and services to brokers, allowing them to significantly expand their offerings to customers."
The transaction is expected to close in the first quarter of 2007 and is subject to customary regulatory filings and approvals.
Headquartered in St. Louis, Missouri, CitiMortgage, Inc. specializes in the nationwide lending of residential home mortgages through Retail, Wholesale, and Correspondent loan origination channels.
Citigroup, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney and Banamex. Additional information may be found at www.citigroup.com
Certain statements in this document are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Citigroup’s filings with the Securities and Exchange Commission.