Bank Foreclosure Prevention Program by Citi Up by 20 Percent

The bank foreclosure prevention program of CitiMortgage, the mortgage lending unit of Citigroup, has been improving significantly, based on its quarterly report released this week and on the statements of its chief executive Sanjiv Das.

According to CitiMortgage, it has modified 130,000 mortgage loans worth $20 billion in the July-September quarter, increasing its modification rate by 20 percent compared to its modification performance in the April-June quarter. It also reported that three percent of its mortgage loans totaling $751 billion were in the foreclosure process or in loss mitigation schemes, an increase of one percentage-point from the April-June quarter.

According to Das, Citigroup is the only large bank publishing quarterly reports on its efforts to help distressed homeowners save their houses from foreclosure. The reports not only describe the contributions of the bank to the recovery of the housing market, but also provide updates on the nationwide Home Affordable Modification Program and on the achievements of community groups, legislators and the Obama administration.

By Cassiano Travareli