Citigroup Inc. announced yesterday that it is cutting back its wholesale mortgage business. The institution said it will reduce the number of independent mortgage brokers it works with by 90 percent. Citi also plans to eliminate 500 mortgage sales and support jobs, representing about five percent of the company's mortgage-related staff in the United States. Citi's remaining wholesale mortgage operations will be based in St. Louis and Dallas.

A number of financial institutions have recently abandoned their mortgage activities as the aftershocks of the subprime lending crisis have hit their balance sheets hard. But Citi said yesterday's announcement does not mean they are planning to exit the wholesale mortgage business – they are simply “redefining” it.