Citigroup to help at-risk borrowers stay in homes

[lunatica]

Citigroup unveils moratorium on foreclosures, plans to reach out to 500,000 at-risk borrowers

NEW YORK (AP) -- Citigroup says it is imposing a moratorium on most foreclosures as part of a series of initiatives aimed at helping at-risk borrowers remain in their homes -- making Citi the latest big bank to announce sweeping efforts to try to curtail losses from souring mortgages.

ADVERTISEMENT
Citi said late Monday it won't initiate a foreclosure or complete a foreclosure sale on any eligible borrower who seeks to stay in a home if it is the borrower's principal residence, the homeowner is working in good faith with Citi and has sufficient income to make affordable mortgage payments.

Citi said it is also working to expand the program to include mortgages the bank services but does not own.

Additionally, over the next six months, Citi plans to reach out to 500,000 homeowners who are not currently behind on their mortgage payments, but who are deemed as potentially needing assistance to keep current with their payments. This represents about one-third of all the mortgages that Citigroup owns, the bank said.

Citi plans to devote a team of 600 salespeople to assist the targeted borrowers by adjusting their rates, reducing principal, or increasing the term of the loan, steps known in the mortgage industry as a workout.

Of the four biggest U.S. banks -- Citigroup, JPMorgan Chase & Co., Bank of America Corp. and Wells Fargo & Co. -- Citi has been on the shakiest footing as a result of the mortgage crisis, reporting losses in the past four consecutive quarters while its rivals have managed to post profits. The steps announced Monday are designed to stem those losses.

more....

http://biz.yahoo.com/ap/081111/citigroup_homeowner_assistance.html

[OmmmSweetOmmm]

1. I'd never thought I would ever give kudos to Citibank, but I am now. That is an

excellent move on their part.

[RUMMYisFROSTED]

3. Pure PR.

[OmmmSweetOmmm]

5. It might be PR but it will also help some families out. It can also help stem some

of the decline in those neighborhoods. Vacant homes depreciate everyone else's home values.

[RUMMYisFROSTED]

6. Their lending practices should have been illegal in the first place.

Yes, it will help people.
No, it's not out of the kindness of their hearts.

[lunatica]

4. They've had the biggest losses in the last four quarters

So it's smart business to try to keep themselves viable. Unfortunately they don't have any control over the causes of the mortgage problems for people who are losing their jobs. It may be too late, but at least it's something.

[RUMMYisFROSTED]

2. Citigroup loves us after all!

:eyes:

Alt headline: Citigroup Moves To Lessen Its Predatory Lending

[Javaman]

7. Exactly, it's nothing but PR based on panic for their own lives.

if they really thought highly of these poor home owners, they wouldn't have waited this late in the game to help them out.

They were squeezing them dry until the owners had to file for bankruptcy or walk away.

When citi's balance sheet shows that they can no longer hold anymore foreclosed properties, it's only then that they want to help out the little people.

citibank is scum. period.