Citi Gives Mortgage Workouts to 130,000 Borrowers
A day after Bank of America (BAC) released details of the 100,000 mortgage workouts it offered through a homeownership retention program so far, Citigroup (C) said it provided workouts for 130,000 distressed homeowners in Q309. The dollar amount of worked-out mortgages reached $20bn, and the total amount of loss mitigation actions for borrowers serviced by Citi grew 85% from Q308, according to the report. Along with its participation in the Home Affordable Modification Program (HAMP), Citi attributes the performance to its own program, the Homeowners Assistance Program, which provides modifications, extensions, forbearances and reinstatements. The data reveals loss mitigation successes outnumbered foreclosures by more than 15 to one, almost four times the rate it reported in Q308. Under HAMP, the US Treasury Department provides capped incentives to servicers for the modification of loans on the verge of foreclosure. CitiMortgage, the servicing and lending arm of Citigroup, started HAMP trial modifications for 40% of its 221,916 loans eligible under the program through October, according to the latest Treasury report. That total jumped from 23% through September, and it’s the second highest percentage of all participating servicers. Since the start of the foreclosure crisis in 2007, Citi has worked with roughly 715,000 homeowners – a total origination value of almost $79bn. From its lending side, Citi processed nearly 175,000 mortgage applications worth $25bn and originated $14bn in mortgage loans in Q309. "Importantly, even in this environment,” said Sanjiv Das, president and CEO of CitiMortgage, “we continue to extend mortgage credit to people of various socioeconomic backgrounds to fund home buying across the country.” Write to Jon Prior.