Citigroup Inc., the third-biggest U.S. bank by assets, sold $158 million of mortgages to a joint venture of two investment funds as the lender disposes of unwanted home loans, Bloomberg News reported yesterday. The partnership of Oaktree Capital Group LLC and Carrington Holding Co. bought the loans under a program to offer delinquent borrowers an opportunity to rent their homes as an alternative to foreclosure and eviction, the three companies said in a statement. Citigroup Chief Executive Officer Vikram Pandit is reducing the bank’s U.S. mortgage portfolio as part of his strategy to offload unwanted assets from the Citi Holdings division, which had $100 billion of home loans in North America at the end of June. The bank sold $500 million of delinquent mortgages in the second quarter, the bank said last month.
