Mortgages Remain a Priority for Citigroup, Inc (NYSE: C)

Citigroup, Inc (NYSE: C) has been working hard to re-invent itself by shedding non-core businesses and focusing on its retail, corporate and investment banking and has made a big push into mortgages as part of that move.

During the last two months, mortgage applications at Citigroup, Inc (NYSE: C) branches have increased by more than 60%, according to a WSJ report. Loans larger than $729,000, known jumbo mortgages, are also up 30% at Citi.

Citigroup, Inc (NYSE: C) had more than $2 billion in mortgages in its application pipeline during the month of June, up from less than $1 billion back in February.

The New York-based bank still faces financial stress from mortgage backed securities that became toxic as a result of the financial crisis and the meltdown of them mortgage market, but Citigroup, Inc (NYSE: C) has decided to beef up its mortgage origination business as part of its new business strategy.

Brad Dinsmore, the head of Citi’s North American retail banking business, told the Wall Street Journal that the increase in Mortgage Applications is a demonstration of the bank’s new strategy. Dinsmore said that the real-estate crisis is far from over, but home mortgages have become “a top priority,” he said.

“If you are a full-service retail bank, you have to be a player in the mortgage market. It allows us to build a much deeper relationship” with retail banking customers, Mr. Dinsmore said.