Citigroup will no longer purchase "medium or high-risk" loans that could result in buyback requests from Fannie Mae or Freddie Mac, in the bank's latest effort to improve the quality of mortgages it buys from correspondent lenders, according to an internal memo obtained by ASR sister publication American Banker.

In a two-page memo sent on Jan. 16, Citigroup executives told correspondent lenders "to withdraw medium/high risk loans," saying the bank could not predict time frames for when the loans would be reviewed "if we are able to review them at all."

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