Citi: Our Redefaults Of Mods at Just 23%
New York-CitiMortgage says that 23% of delinquent home loans it modified over the past year fell into default again - into the 60- and 90-plus day late categories.
Citi's results appear to be better than government figures released late last year that showed 55% of loan modifications performed by national banks and thrifts were 30-plus days late after six months.
The bank-owned mortgage lender also said that even if a loan goes late again it does not necessarily mean the home will go into foreclosure. "We continue to work with these borrowers after re-default to find long-term solutions to help keep them in their homes," said a company spokesman.
Since 2007, CitiMortgage has modified 440,000 customers affecting $43 billion of mortgage debt. However, these modifications include loan extensions and what the spokesman called "other forms of workouts."
Meanwhile, CitiMortgage last week launched a new program allowing unemployed mortgagors to pay a reduced amount on their loans for up to three months.
But the program is only for loans that CitiMortgage holds in portfolio and are for $417,500 or less. The new effort, the Homeowner Unemployment Assist program, can lower monthly payments to just $500 (on average) for up to three months. Investor loans are excluded from the program.