Citicorp's Washington, D.C., thrift has stopped accepting applications for loans on cooperative apartments and certain types of condominium units.
Bruce Gouldey, a vice president at the $1.2 billion-asset Citibank FSB, said the move stemmed from a concerted drive throughout Citicorp to sell new mortgages into the secondary market.
The thrift's co-op loans and some of its condo loans did not meet the requirements of the secondary market agencies, he said.
Less than 3% of the thrift's annual mortgage originations came from co-ops and condos, he said.
He also said that Citibank would soon return to the market with co-op loans that conformed with the agencies' requirements.
Co-ops are a major part of the housing market in New York City, and Citibank has no plans to retreat from that market, a spokeswoman said.
