The bank foreclosure prevention program of CitiMortgage has been improving significantly. CEO Sanjiv Das also said that the bank has started implementing principal reduction for some deserving borrowers.
The mortgage unit of Citigroup Inc. has substantially increase its loan modification efforts in response to the Obama Administration's call to intensify and speed up the process to help as many people as possible avoid foreclosures. Additionally, the unit hired more employees to handle its foreclosed prevention program.
A report showed that the Obama Administration’s $75 billion program to stem the tide of bank foreclosure homes in the country has helped only 9 percent of qualified borrowers. The report also noted that 10 participating lenders failed to modify a single troubled mortgage.
Several cases have shown that banks still have problems in the way they handle foreclosure cases. However, anxious homeowners may heave a sigh of relief as there will be no evictions for the holiday period.
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