With GSB, Citi Will Jump to #6.(Golden State Bancorp; CitiMortgage)(Brief Article)(Statistical Data Included)

New York-Several years back, the word on the street was that Citigroup didn't really care much for mortgage banking.

But with the firm's recently announced plan to buy Golden State Bancorp, San Francisco, the question now becomes: just how big in mortgages will Citi become?

By purchasing CalFed and its mortgage subsidiary, First Nationwide Mortgage, Frederick, Md., Citigroup's mortgage affiliate, CitiMortgage, St. Louis, jumps to No. 6 in servicing from No. 10.

Once CitiMortgage combines FNM with its base of receivables, it will have $219 billion in residential servicing rights, which translates into a market share of 3.8%. (The combined mortgage operation will rank seventh among funders.)

Some competitors of CitiMortgage note that the parent wasn't necessarily gunning for FNM, but was really more interested in CalFed's branch network which boasts 352 branches ($54 billion in deposits) including 335 in California and 17 in Nevada.

Nonetheless, FNM, which is managed by industry veteran Terry Klein, enjoys a reputation as being a well-run, low- cost servicer.

By purchasing CalFed/GSB Citi is making a major push into California, a state whose mortgage market is dominated by Washington Mutual, Countrywide Home Loans, World Savings and other California-based powerhouses.