Citi Reports Improved Foreclosure Prevention Success Rate in Florida
Preliminary results reveal potential foreclosure prevention successes outnumbered foreclosures completed by nearly 16 to 1
Miami, Florida – In a preliminary review of its third quarter foreclosure prevention data in the Florida housing market, Citi today announced its activities in the Sunshine State successfully helped distressed homeowners avoid potential foreclosure at nearly three times the rate of a year ago. New third quarter data shows that Citi’s loss mitigation successes in the state outnumbered foreclosures completed by a ratio of almost 16 to 1 compared to almost 6 to 1 in the third quarter of 2008. Citi manages a $750 billion mortgage portfolio of loans it owns or services.
“Citi is very focused on keeping distressed borrowers in their homes and is committed to driving solutions that help them do so. This is a paramount issue for Citi, and under the direction of Citi’s Chief Executive Officer, Vikram Pandit, we have invested heavily in people, technology and training to help borrowers avoid potential foreclosure,” said Sanjiv Das, President and Chief Executive Officer of CitiMortgage. “We are pleased with our progress to date, but there is more to be done. Recent improvements in documentation requirements and increased borrower awareness are resulting in greater success for trial modifications and other solutions.”
Since the beginning of the mortgage crisis in early 2007, Citi has helped approximately 715,000 distressed homeowners across the country with underlying mortgages of nearly $79 billion avoid potential foreclosure and stay in their homes.
“Communication is essential to success, and we strongly encourage homeowners who find themselves in financial distress to call their mortgage company right away to get help as soon as possible,” continued Mr. Das. “Your mortgage company is here to help, and remember that our counseling is free of charge.”
Industry Leading Foreclosure Prevention Programs
Citi has developed and implemented a robust foreclosure prevention program of modifications, extensions, forbearances, reinstatements, along with the introduction of its early outreach program, Citi Homeowners Assistance Program, and the Citi Unemployment Assist Program. Citi is committed to supporting other loss mitigation activities, including participation in the federal Home Affordable Modification Program (HAMP). As of October 31, 2009, CitiMortgage had begun trial HAMP mortgage modifications for 40 percent of eligible borrowers, placing Citi first among its peers of major U.S. mortgage servicers.
Citi released the foreclosure prevention results in Florida to coincide with Mr. Das’ visit to the state where he will meet with community leaders and nonprofit partners in Miami to discuss strategies to prevent potential mortgage foreclosures, meet with employees and others to reconfirm Citi’s commitment to economic recovery in Florida and across the country.
Each quarter, Citi releases a detailed analysis of its national foreclosure prevention activities in its portfolio of owned or serviced loans, including its efforts in 22 states as part of its ongoing commitment to transparency in lending and foreclosure prevention. Citi remains the only major mortgage servicing institution to provide such analysis. The eighth edition of Citi U.S. Consumer Mortgage Lending Data and Servicing Foreclosure Prevention Efforts report covering the third quarter 2009 will be issued later this month.
Citi is a major local employer with approximately 11,000 employees statewide. In 2008, Citi business contributions to eligible organizations and Citi Foundation grants to non-profit organizations in Florida totaled more than $3 million.
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