NTIC to Help Citi Set Lending Standards

CitiFinancial, New York, has entered into a partnership with the National Training and Information Center that will set lending standards for the subprime mortgage company.As part of the agreement, CitiFinancial and NTIC have agreed to regularly review the progress of CitiFinancial's real estate lending initiatives and work together to encourage the adoption of similar practices by other lenders. CitiFinancial will focus on a multistage foreclosure review process and implement a review-and-repair program for the victims of abusive practices in cities served by NTIC and its affiliates. CitiFinancial, suffering from some fallout from its acquisition of Associates First Capital, had already adopted many changes to its practices, including the elimination of single-premium credit insurance, a three-point cap on retail production, and a redesign of credit insurance sales practices in its retail branches. NTIC is a Chicago-based group that serves as a resource center for grassroots and neighborhood groups. Among its affiliates is National People's Action.