Citi’s Experiment with Curbs Results in Loan Broker Flight
May 21, 2001
Restrictions on broker and lender fees and compensation that a major financial institution has adopted under a test project with consumer groups are driving away broker business, according to initial results. Citigroup, which experimented by limiting its broker and lender fees to 3 percent, reported a dismal drop in broker business since the test project was launched back in February in Illinois and Maryland, according to corporate officials.