From Bloomberg dated February 5:

Citigroup Inc. has agreed to sell it’s billing and collections rights for 185,000 mortgages to the American Home Mortgage Servicing Inc of Wilbur Ross. In return, Citigorup will get $1.5 billion, this is according to an e-mailed statement of the Irving, Texas-basd American Home. This transaction includes rights to mortgage servicing fees and also the temporary advances that Citigroup had made on behalf of delinquent borrowers to mortgage investors.

Despite this, there will be no material impact on overall results.

This transaction helps the company towards closing out the Citi Residential Lending which was a unit that was created when the bank bought the mortgage-servicing rights of ACC Capital Holdings, which amounts to 45 billion dollars. Afterwards, the bank consolidated it’s mortgage operations and decided to wind down Citi Residential Lending.

Citigroup rose 4 cents to $3.53 at 4:15 p.m. in New York Stock Exchange composite trading. The shares are down 47 percent this year.

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4. AIG Replaces Head of Mortgage Insurance Unit

5. TARP Speculation – Mortgage Help in the Works?