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Citigroup once again is leading the mortgage industry in a revolutionary way by increasing its lending by 36.5 million. This boost or increase in lending was prompted by taxpayers, though. Taypayers wanted to know what has Citigroup done with the 45 million it received from the federal government last year.
According to Citigroup, the 45 million that it received was not for direct lending to consumers, but for leverage to allow Citigroup to receive funds from other funding sources and lend that new money out to consumers. According to an Associated Press article, “A bank makes money by borrowing cheaply for the short term and lending at higher rates for the long term; if a bank has no capital, other institutions and investors won’t lend to it.”
If you are interested in getting a loan try Citigroup first. It is ready to lend.
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