Citigroup Inc. said Thursday that it would buy Source One Mortgage from Fund American Enterprise Holdings Inc. in a deal that would nearly double Citigroup's home loan volume.
The deal would make Citigroup the ninth-largest mortgage originator in the country. Citi and Source One together originated $27 billion of home loans in 1998. The deal would also make Citi the 11th-largest servicer, with a $70 billion portfolio. Terms of the deal were not disclosed. Fund American said that Source One had a book value of $368 million on Dec. 31, and that it anticipated a $15 million after-tax gain from the sale.