Citi has introduced a series of initiatives designed to proactively help potential at-risk borrowers remain current on their payments and ultimately in their homes.
Under the Citi Homeowner Assistance program, the company will preemptively reach out to a select group of 500,000 homeowners whose mortgages Citi holds. These homeowners are not currently behind on their mortgage payments, but some may require help to remain current on their mortgages.
In addition, Citi will systematically implement its practice of not initiating a foreclosure or completing a foreclosure sale on any eligible borrower where Citi owns the mortgage, the borrower is seeking to stay in the home which is his/her principal residence, is working in good faith with Citi, and has sufficient income for affordable mortgage payments. Citi adds that it is working diligently with investors to secure their approval to expand the program to include mortgages Citi services but does not own.
Citi also recently streamlined its existing loan modification program, which is similar to the IndyMac model, to aggressively rework delinquent loans. This program uses a simplified formula to determine an affordable payment as a percentage of the borrower's gross income and then reduces the monthly payment to that amount by one or more of the following: interest rate reduction, extension of term or forgiveness of principal.