Posted on: 06th Mar, 2009 05:04 am
I'm currently on the market for a mortgage and was pre-approved with Citibank. I'm now not so sure this is the best idea with what is going on with their stock. Trading at $1.02 and owned 36% by the government makes me worry they might fold before my closing date. Would you still use CitiMortgage?
those companies which have govt stake in it are never going to fold because.........
1. govt gets a good income from those companies govt will do max to float them.
2. CITI being one of the biggest firm, regardless their current situation have different sources to get hold on the situation.
3 .I am not getting why you are worried because you are taking mortgage from the citi. you are putting your money with CITI. so you shouldn't be worried.
all this turmoil is part of the bullish phase and everyone is feeling some crunch in this turmoil. :arrow:
1. govt gets a good income from those companies govt will do max to float them.
2. CITI being one of the biggest firm, regardless their current situation have different sources to get hold on the situation.
3 .I am not getting why you are worried because you are taking mortgage from the citi. you are putting your money with CITI. so you shouldn't be worried.
all this turmoil is part of the bullish phase and everyone is feeling some crunch in this turmoil. :arrow:
the above answer isn't really sensible. please, manoj, try to make a little more sense.
the government doesn't get a "good income" from citibank. citibank's "current situation" can turn into a long term situation and their "getting hold" of the situation isn't in the immediate future anyway. and you are not "putting your money with citi" and even if you were, that's not a reason not to worry.
nevertheless, obtaining a mortgage from any lender is not a big deal - citi is likely to sell the loan, and even if citi folds, some other lender is going to take over the loan. if you are getting a reasonable interest rate or a reasonable deal in general, then you ought to take what they're giving you. if you're still unsure, by all means, talk to someone else.
the government doesn't get a "good income" from citibank. citibank's "current situation" can turn into a long term situation and their "getting hold" of the situation isn't in the immediate future anyway. and you are not "putting your money with citi" and even if you were, that's not a reason not to worry.
nevertheless, obtaining a mortgage from any lender is not a big deal - citi is likely to sell the loan, and even if citi folds, some other lender is going to take over the loan. if you are getting a reasonable interest rate or a reasonable deal in general, then you ought to take what they're giving you. if you're still unsure, by all means, talk to someone else.
"the government doesn't get a "good income" from citibank."
i will again stress this point that govt does make 30 cents when citi earns $1.
i will prove it to you.when CITI was in bad situation (now also it is ) govt had given them financial assistance in return of 30 % stake (equity shares) so whenever CITI will be in profit , some profit will surely be shared by govt. and no govt want to loose their invested amount to go in vain so surely they will keep their interest in CITI to make it somehow survive.....
Citi's other branches from all over world haven't faced losses in subprime fiasco.So their contribution will also be good help when it comes to restructuring the whole institution.
i will again stress this point that govt does make 30 cents when citi earns $1.
i will prove it to you.when CITI was in bad situation (now also it is ) govt had given them financial assistance in return of 30 % stake (equity shares) so whenever CITI will be in profit , some profit will surely be shared by govt. and no govt want to loose their invested amount to go in vain so surely they will keep their interest in CITI to make it somehow survive.....
Citi's other branches from all over world haven't faced losses in subprime fiasco.So their contribution will also be good help when it comes to restructuring the whole institution.
i don't buy the argument, manoj
The financial status of Cititbank has little or nothing to do with your mortgage. The mortgage money comes from Fanie Mae and Freddie Mac and the rates are established by how many large investors buy Mortgage Backed Securities and at what coupon rate they buy them. Citibank then adds a margin and my experience with Citi mortgages--and I do them all day long---is that they are proceed very well.
After your loan closes, if anything happens to Citimortgage, nothing happens to your loan terms, they stay exactly the same. It is possible that something could happen to Cititnortgage before you close your loan and that could be a concern--for some unknown reason they could drop out of the mortgage business and stop fubding loans at closing.
If you have a big concern, do you mortgage with anyone. The rates are same at all the big banks becasue the money all comes from the same places--usually. You have only been preapproved. Apply anyplace.
Personally, I feel safe processing Citimortgages
After your loan closes, if anything happens to Citimortgage, nothing happens to your loan terms, they stay exactly the same. It is possible that something could happen to Cititnortgage before you close your loan and that could be a concern--for some unknown reason they could drop out of the mortgage business and stop fubding loans at closing.
If you have a big concern, do you mortgage with anyone. The rates are same at all the big banks becasue the money all comes from the same places--usually. You have only been preapproved. Apply anyplace.
Personally, I feel safe processing Citimortgages
i agree john...money is money. i don't know about that "fubding" loans thing, but i know that wherever the mortgage money comes from it's still gotta be paid back, and even if the lender folds, someone else will surely pick up that bill and look for the payments.
and, of course, this is me:
i agree john...money is money. i don't know about that "fubding" loans thing, but i know that wherever the mortgage money comes from it's still gotta be paid back, and even if the lender folds, someone else will surely pick up that bill and look for the payments.
oh, and i know you're upset about last night's result, john, but look on the bright side - the acc tourney is this week, and there's always the ncaa's!
i agree john...money is money. i don't know about that "fubding" loans thing, but i know that wherever the mortgage money comes from it's still gotta be paid back, and even if the lender folds, someone else will surely pick up that bill and look for the payments.
oh, and i know you're upset about last night's result, john, but look on the bright side - the acc tourney is this week, and there's always the ncaa's!
"wherever the mortgage money comes from it's still gotta be paid back, "
i agree with you on this aspect.One need to pay back when one owe something to the lender, regardless of all the excuses and varied difficulties. :arrow:
i agree with you on this aspect.One need to pay back when one owe something to the lender, regardless of all the excuses and varied difficulties. :arrow:
I was worried that something would happen before I close. I am using them and I got a great rate. So, hopefully everything will work out.
you'll be fine, guest. even if a new lender took over, they'd need to honor the terms you agreed to.
and yesterday, citibank stock was up a whopping (what'd i see?) 38(?) per cent? wow...one of these days it might be $2 a share again!
and yesterday, citibank stock was up a whopping (what'd i see?) 38(?) per cent? wow...one of these days it might be $2 a share again!
In this market probably if you have a memebrship in any credit union check them out first before goign to these big banks.
Once you are trapped, its hard to negotiate any thing.
Once you are trapped, its hard to negotiate any thing.
how does one get "trapped" when doing business with a big bank? or a small bank? or a mortgage company? or a credit union? are they using traps like those that are used for big game, or is it more like a mousetrap?
geni, i don't get your reasoning.
geni, i don't get your reasoning.
And unfortunately a lot of credit unions only offer home equity loans/lines of credit, not traditional mortgages.
I agree with George on the whole "trapped" thing. It doesn't matter who your loan is with it is a legally binding contract that cannot just be revised at a lender's liking. As long as you're paying your bills on time you will be fine, regardless of who the loan is with.
And you said it yourself manoj, the government now makes money when citi makes money, just as they can loose money if citi looses money. But is citi really making any money right now as foreclosures and loan defaults continue to increase?
I agree with George on the whole "trapped" thing. It doesn't matter who your loan is with it is a legally binding contract that cannot just be revised at a lender's liking. As long as you're paying your bills on time you will be fine, regardless of who the loan is with.
And you said it yourself manoj, the government now makes money when citi makes money, just as they can loose money if citi looses money. But is citi really making any money right now as foreclosures and loan defaults continue to increase?
i can't agree with that last paragraph, scott. the thought is a bit misguided, i think. inasmuch as our federal government is in a loss situation (continuously), any money "made" will simply have the effect of reducing the loss (a tiny bit).