US banking heavyweight Citigroup is buying ABN Amros mortgage business, as it looks to strengthen its consumer lending arm.
Citigroup will purchase roughly $9bn of ABN Amros assets and its $224bn mortgage portfolio.
The acquisition will add around 1.5 million servicing customers to CitiMortgage along with 2,500 wholesale brokers to its wholesale lending business, Citigroup says.
Carl Levinson, president and chief executive of Citigroups lending group, says: The acquisition of ABN Amro mortgage group demonstrates our commitment to grow our consumer lending business in the US.”
The purchase, for an undisclosed sum, will move Citigroup from number five to four in mortgage servicing market, the US bank says.
ABN Amro says its decision to sell its mortgage arm, which is set to be complete by March, is part of its strategy to streamline its business.