Modifications Outpace Foreclosures at CitiMortgage
Posted on April 9th, 2010 by admin
CitiMortgage, the mortgage arm of Citigroup, offered loan modifications on mortgage loans to the extent of almost $19 billion in the fourth quarter of 2009.
For the first time, loan modifications outpaced foreclosures in that same quarter.
Citi, which joined the Home Affordable Modification Program (HAMP) in April 2009, led servicers in the last quarter of 2009 by providing modifications on 47 percent of the 241,981 loans eligible for HAMP in its portfolio.
Foreclosures initiated by Citi increased 1 percent in the last quarter of 2009, while the actual amount of foreclosures completed dropped 1 percent for the same quarter.
At Citi there were 8,070 pending permanent mortgage modifications as of February. Citi has had a significant success over the past few months in the home loan modification program.
According to data released by the Treasury Department, of the 3.4 million loans eligible for HAMP, 29 percent have received active trial and permanent conversions.
In total, servicers have provided 170,000 permanent modifications through the program or approximately 5 percent of the 3.4 million HAMP eligible loans.
What of the other 24 percent that have received trial modifications? Will they ever be made permanent? And let’s not forget the remaining 71 percent who will probably lose their home.