CitiMortgage assisting distressed homeowners through innovative programs.
By Citi April 02, 2010 05:07 PM
Since the beginning of the mortgage crisis in 2007, we have worked in a variety of ways with over 824,000 homeowners to help them in their efforts to avoid foreclosure. CitiMortgage was among the first lenders to sign on to the U.S. Treasury's Home Affordable Modification Program (HAMP) and we recently agreed to participate in the Treasury's second-lien modification program. We have also provided deferments, extensions, repayment plans and other forms of modification to many mortgage customers in financial trouble. In addition, we offer the Citi® Homeowner Assistance Program, which engages at-risk customers who may show signs of financial distress even before they enter delinquency.
As a mortgage lender, CitiMortgage is very aware of the challenges that any job loss presents to a homeowner's finances. We have been out in front of the industry with the Citi® Homeowner Unemployment Assist Program, an innovative initiative started in March 2009, offering temporary mortgage relief to certain recently unemployed borrowers. Under the program, we lower monthly mortgage payments for qualifying CitiMortgage-owned loans to an average of $500 for three months, a figure below the average rent for a one-bedroom residence in the U.S. This program can help some homeowners while they get their financial feet back on the ground. If the customer is not employed within three months, we work with them on a case-by-case basis to explore the best solutions.
Another effort is the Citi® Foreclosure Alternatives Program, which is a new pilot in several states that allows distressed CitiMortgage borrowers to avoid foreclosure and remain in their homes for six months by agreeing to sign over their property deeds to CitiMortgage at the end of that period. The Obama Administration has just announced enhancements to existing foreclosure-prevention programs, including HAMP, to deliver more help to borrowers. We welcome the opportunity to build on these efforts and look forward to working with Treasury on the details of specific new programs.
For more information on CitiMortgage's programs to help distressed homeowners, go to www.citimortgage.com. Also, our ninth report detailing Citi's lending and foreclosure prevention efforts through the fourth quarter of 2009 is available here.