Citigroup suspends mortgage applications

Still trying to get it right, Citigroup suspended mortgage applications from outside mortgage brokers on June 22, citing problems with property appraisals and income-verification documents -- problems that were rampant during the inflation of the real estate bubble.

Citigroup (C) plans to review its processes and reeducate its underwriters before taking applications again on July 6. During that time mortgage brokers will need to work with other lenders.