Citigroup is the latest major lender to commit to the government’s Second-Lien Modification Program, 2MP, that helps borrowers reduce payments on second mortgages.
JPMorgan Chase, Bank of America and Wells Fargo have already announced their intended participation in the program that works in conjunction with the larger foreclosure prevention effort, Home Affordable Modification Program, HAMP.
Citigroup’s unit, CitiMortgage, is usually ranked first or second on HAMP’s list of mortgage servicers with the highest ratio of eligible borrowers in active mortgage modification trials. In February’s HAMP report, CitiMortgage slipped to second place with a 52 percent share of eligible under assistance, just behind GMAC’s 53 percent.
HAMP’s overall share of eligible in modifications is just 29 percent.
Citi said today that it has helped more than 825,000 families avoid foreclosure since 2007.
“The 2MP program will further improve the affordability on mortgages and help families facing financial distress stay in their homes,” said Vikram Pandit, Chief Executive Officer of Citigroup.
