In a recent Kenneth Harney column he talks about Citigroup putting together a 20 billion dollar fund that will pre-emptively address mortgages that may get into difficulty based upon credit profiles.
AMEN BROTHERS.
The same day the new federally assisted mass-modifications effort was announced, one of the largest lenders and servicers, Citicorp, unveiled a program designed to catch at-risk homeowners before they fall behind. Beginning this month, Citicorp will reach out to an estimated 500,000 customers who are not currently delinquent but who appear to be at risk — either because their credit files show telltale signs of financial stress or because their homes are in markets Citicorp classifies as facing serious economic strains and job losses in the coming year.
The bank said it expects to complete up to $20 billion in “pre-emptive” mortgage modifications in the next six months using rate reductions, term extensions and even reductions in principal debt balances. Citicorp also intends to halt all foreclosures in the coming months for owners who have sufficient income to handle modified monthly loan payments at some level, and who are working in good faith with the bank to save their house. via washingtonpost.com.
These banks are geniuses at creating credit profiles for credit card offers. For once they are refocusing their efforts not on getting new business but saving the business that they already have. By using the sophisticated credit tools they have developed to help families that are in over their heads they are saving the bank money in the long run.
Bravo, Citi, now we hope you survive long enough to implement the plan!
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Hopefully Citicorp can go through with their plans and help as many people as they can. Hopefully others will follow their proactive stance.
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Thanks
The real reason why the govt came to the rescue of Citi, is because the govt just switched over the govt credit purchasing program to them, eff. December. …otherwise we would've let them burn…
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