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.
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.
