Citigroup to lower some mortgage payments
Jennifer McClelland | RSS | 4 CommentsAs part of a new program to assist unemployed customers, Citigroup has announced that it will be lowering mortgage payments to an average of $500 a month for three months.
Citigroup will be accepting a $25 billion bailout loan with the stipulation that the government take up to a 36 percent stake in the company. This is proably one of the main reasons for Citigroup’s decision to help out people who are losing their jobs.
The government’s stimulus bill will be changing mortgage terms for some mortagage borrowers that they may actually benefit from.
Unemployed homeowners who may qualify for assistance from Citigroup under the Homeowner Unemployment Assist program include those that are 60 days or more past due on their mortgages or in foreclosure and can pay the reduced amount. Customers must also have a first mortgage loan that is owned and serviced by CitiMortgage Inc. and conforms to government sponsored enterprise limits. The house must also be the customer’s primary residence, with homeowners meeting all insurer and guaranty requirements.
“Our Homeowner Unemployment Assist program is intended to serve as a bridge toward a longer-term solution, helping homeowners stay in their homes and in their communities while they get their feet back on the ground,” CitiMortgage Chief Executive Sanjiv Das said in a statement.
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Tags: mortgage terms, percent stake, citimortgage inc
Lex | Mon, Mar 16 2009
Discounts at citibank.Seems wal-mart has got a new companion.
Luke | Mon, May 11 2009
A few clients turned to me for mortgage acceleration, thinking their up size down loan can be saved using mortgage acceleration strategy, unfortunately, the best one is to hold one your homes.
robert | Fri, May 22 2009
It’s great that citibank is taking some steps to be more consumer friendly. Hopefully they will take additional steps to improve their disclosure and Service Release Premium on their loans.
Chris McClelland | Fri, May 22 2009
Anything that Citi can do right now is a blessing in my playbook. The “Homeowner Unemployment Assist Program” has been controversial in is true benefit it has done for homeowners. However, a company willing to work with it clients is always a good scenario.
Cough, I just wish they had done so earlier.