In Brief (three items)

New Citi Unit to Make Nonconforming Loans

BALTIMORE - CitiFinancial Credit Co., the consumer finance unit of Citigroup, said it has created a new subsidiary, CitiFinancial Mortgage Co.The unit will make nonconforming home loans, buying them from brokers and correspondents. It acquired most of the assets of IMC Mortgage Co., including a $7 billion portfolio of servicing rights, offices in New Jersey, Ohio, and Pennsylvania, and a loan servicing system.

Like IMC, CitiFinancial Mortgage will be based in Tampa. Harry Goff, who comes from CitiFinancial Credit, will be chief executive officer. Former IMC executives Tom Middleton, Stuart Marvin, and Timothy Griffin will be president, chief financial officer, and chief credit officer respectively.

Richard Kile, head of wholesale lending at Travelers Bank & Trust FSB, a unit of CitiFinancial Credit Co., was named executive vice president for U.S. production at CitiFinancial Mortgage.


Delinquencies Declined To 4.10% in 3d Quarter

WASHINGTON - Mortgage delinquencies fell 3 basis points, to 4.10%, in the third quarter, according to a survey by the Mortgage Bankers Association of America.Delinquencies have dropped 32 basis points since the second quarter of last year, the trade group said. They are at their lowest level since the first quarter of 1995, when they registered at 3.92%.

Paul Reid, executive vice president of the MBA, credited last year's refinance boom and the influx of new mortgages from record home sales this year.

"This much larger than normal share of 'new' mortgages, which typically have fewer delinquency problems, has helped bring the overall delinquency rate down," Mr. Reid said.


Web Exchange's Board Adds Two Big Names

WASHINGTON - Pedestal Inc., the Internet secondary mortgage market exchange, named high-profile mortgage executives William H. Lacy and Donald E. Lange to its board of directors.Mr. Lacy is chairman of Mortgage Guaranty Insurance Corp., the largest U.S. mortgage insurance company. He plans to retire from the Milwaukee insurer at yearend.

Mr. Lange is president and chief executive officer of Pacific Financial Services Inc., Los Angeles, and former president and CEO of Weyerhaeuser Mortgage Co. in Torrance, Calif. He was president of the Mortgage Bankers Association of America last year.

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