Citigroup to lower some mortgage payments

Jennifer McClelland | RSS | Tue, Mar 03 2009 | 4 Comments

As 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.

From the Washington Post:

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: percent stake, citimortgage inc, mortgage terms