CitiMortgage: Re-defaults of Loan Mods Just 23%

CitiMortgage says that 23% of delinquent home mortgages 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 official. Since 2007 CitiMortgage has modified 440,000 customers affecting $43 billion of mortgage debt. Meanwhile, CitiMortgage on Tuesday 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, called "Homeowner Unemployment Assist" can lower monthly payments to just $500 (on average) for up to three months. Investor loans are excluded from the program.