Fox Sports: Citi/CD rates are too high
Fox Sports reported on Wednesday that Citi and CD rates for mortgages are too expensive, and the rate should be lowered.
“I’ve been a homeowner for 18 years and I’ve been very happy with Citi’s rate structure.
And if you look at their other products, they’re very, very good,” said Citi senior vice president of research David DeChand.
“But the way I look at it, we’re getting into a new cycle where the banks don’t need to offer these types of mortgages, so that’s going to be very difficult to get us back to a point where we’re able to continue offering mortgages that we think are reasonable.”
DeChand said that CITIs current rates are in line with the mortgage market, which is expected to see higher mortgage rates come March and April, and will eventually stabilize.
He said that the bank would work to increase Citi rate changes in order to attract more borrowers.
Citi’s mortgage rates are now 2.25% and 3.75%, according to a report from S&P Capital IQ.
The company has previously said that it will be lowering mortgage rates on its loans as the economy recovers, but DeChof says that the changes are not expected to be significant.
“We’ve already done that, and we’ve already made a commitment that we’re going to lower Citi rates, so the changes will be smaller,” he said.
“We’re also going to continue to work on reducing the number of transactions that are coming to the bank.
We’ll continue to look at that.
We’re not going to go lower.”
Dechand said the bank will likely not reduce Citi loan rates until the economy improves.
“Citi is one of the few banks in the world that has a good track record,” he added.
“If the economy slows down and mortgage rates start to rise, Citi will be one of those that is not going down.”
Citi has seen a strong recovery from the global financial crisis, which began in 2008.
The bank was fined $10 billion by the U.S. government in December for its role in the housing crisis.
DeChamp told Fox that he was confident that CIMI’s loans will be able to weather the downturn, but he acknowledged that there is still a long way to go.
“It’s not going anywhere,” he told Fox.
“It’s just a matter of doing it right.”