CitiMortgage to Reduce Mortgage Payments for Veterans with Disability
Author: Citigroup Inc.
Synopsis and Key Points:
Disabled Veterans Mortgage Relief Program will allow veterans wounded injured or otherwise disabled in the line of duty to make reduced monthly payments on CitiMortgage owned mortgages.
Main DigestCitiMortgage today announced the Citi Disabled Veterans Mortgage Relief Program, a new initiative that will allow veterans wounded, injured or otherwise disabled in the line of duty to make reduced monthly payments on CitiMortgage-owned mortgages.
The new program will offer an interest rate reduction of 2.5% on existing mortgages for a period of two years. Surviving spouses of military personnel who died while on active duty may also be eligible for the program. The offer is part of the Citi Homeowner Assistance Program, which features a number of initiatives to help borrowers in hardship. Borrowers do not have to be delinquent or facing imminent default to participate in the program, and there are no fees to participate.
"At CitiMortgage, we are committed to helping serve the needs of current and former members of the armed forces," said Sanjiv Das, CEO of CitiMortgage. "We recognize that wounded or disabled veterans may be having financial difficulties in this challenging economic environment, and they warrant our heightened consideration. If they do not qualify for other assistance programs that are available, we are offering this program as another potential form of support."
Iraq and Afghanistan Veterans of America (IAVA) Founder and Executive Director, Paul Rieckhoff, said, "IAVA applauds Citi for its new Disabled Veterans Mortgage Relief Program. This program is a solid step towards helping our wounded warriors and their families who have sacrificed so much for our country. Foreclosure and unemployment have hit military families particularly hard in this economic crisis. IAVA and our 200,000 members nationwide welcome this initiative to support our community and we hope to see Citi's continued leadership in this space."
About the Citi Disabled Veterans Mortgage Relief Program
Homeowners are first evaluated for eligibility for a permanent mortgage modification. Those ineligible for a permanent loan modification may then be considered for the Disabled Veterans Mortgage Relief Program. CitiMortgage will bring qualifying clients' loans current if they are delinquent by waiving outstanding late fees and forbearing all past due amounts and other uncollected fees.
- The program is being offered to veterans disabled, wounded or injured in the line of duty.
- Surviving spouses of military personnel who died while on active duty may also be eligible for the program, if they are co-borrowers on the loan.
- Applicants must provide their discharge documents and a letter from the Department of Veterans Affairs confirming they have a service-connected disability.
- The loan must be a first mortgage owned by CitiMortgage on the principal residence.
- The program is open to both current and delinquent borrowers.
- There is no requirement to prove financial hardship.
- Applicants must also sign the program agreement and, if they are currently delinquent, make one reduced payment before being enrolled.
- Federal Housing Administration (FHA), Veteran's Affairs (VA), Rural Development and loans currently under the Service-members Civil Relief Act (SCRA) protection are not eligible for the program.
CitiMortgage is including a notice about the program in its May 2011 mortgage statements. The company is also targeting an email campaign about the new program to its client base. Interested veterans should contact CitiMortgage directly for full details by calling (800) 283-7918.
Citi has a long-standing commitment to complying with the Service-members Civil Relief Act and the protections available to military personnel.
CitiMortgage Series of Initiatives to Help Homeowners
Below are some of the programs Citi has implemented since the economic crisis began in order to assist at-risk borrowers in finding loss mitigation solutions tailored to meet their needs. Since January 2007, Citi has helped more than 1.1 million homeowners in their efforts to avoid potential foreclosure on mortgages totaling more than $135 billion.
- Citi Unemployment Assist Program - Since March 2009, this program has served as a bridge to longer-term solutions for certain qualifying recently unemployed and delinquent borrowers with Citi-owned mortgages. The program lowers monthly mortgage payments to an average of $500 for three months for most eligible borrowers.
- Citi Homeowner Assistance Program (CHAP) - Launched in November 2008, CHAP includes a series of initiatives designed to proactively help potential at-risk borrowers remain current on their payments and ultimately remain in their homes.
- Office of Homeownership Preservation (OHP) - Established in 2007, OHP provides a range of support services that go beyond modification of a mortgage loan, including an extensive partnership network with non-profit organizations that offer legal assistance, counseling and translation services to borrowers.
To see the most recent comprehensive report about Citi's foreclosure prevention efforts, please go to: Citi U.S. Consumer Mortgage Lending Data and Servicing Foreclosure Prevention Efforts, Fourth Quarter 2010.
For further information please call 1-800-283-7918 visit www.citimortgage.com.
About Citi - Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com
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