Entries Tagged 'Mortgage' ↓
November 29th, 2009 — Government Intervention, Mortgage, Mortgage Loans, Treasury Department
The U.S. Treasury Dept. is planning to meet with mortgage lenders and servicers on Monday to urge them to do more to rework troubled home loans.
The Treasury Department’s assistant secretary for financial stability, Herbert Allison, will meet with the mortgage lenders because the Department has been expressing dissatisfaction with lenders recently over the slow rate at which they are amending loan agreements to help borrowers meet their monthly obligations.
In addition, the Treasury Department will be taking steps to enhance mortgage servicer accountability as part of a broader program to increase conversion rates to permanent modifications.
March 3rd, 2009 — Citibank, Economy, Homeowners, Layoffs, Mortgage, TARP, Unemployment
Unemployed homeowners whose have a mortgage with Citibank’s CitiMortgage are now eligible to have their mortgages temporarily reduced to $500 a month, the company announced today.
Sanjiv Das, CitiMortgage’s president announced that the beleaguered company was offering to help recently unemployed homeowners by giving them the option of paying as little as $500 per month toward their mortgage.
Borrowers are eligible to participate in Citi’s program for up to 3 months, and will be required to submit documentation proving they are recent recipients of unemployment benefits. Homeowners in certain situations may even be able to get extensions after the initial 3-month term.
It is not yet known how many of CitiMortgage’s 1-and-a-half million customers will seek assistance, but the company pointed to statistics that about 4 million people have lost their jobs over the past year.
Links: [Citi Hardship Assistance]
August 8th, 2008 — Alt-A, Alternative, Economy, Foreclosure, Mortgage, Subprime
The subprime mortgage crisis dealt a massive blow to families across the U.S., but now a new mortgage disaster is waiting in the wings to affect those with good credit and steady jobs - people who took out mortgages known as “Alternative A” loans.
Known in the business as “Alt A” loans, these mortgages were offered to people who fell in the middle of the spectrum of home-loan borrowers. At one end, were the subprime borrowers who had bad credit and qualified only for loans with high interest rates. On the other end, were the prime borrowers with good credit and income who qualified for loans at the lowest interest rates.
Like prime borrowers, the Alt-A loans went to people with good credit. But in most cases they’ve received loans where they didn’t have to document their income or assets.
Many of these loans were adjustable-rate mortgages that are now resetting to higher rates and higher monthly payments. The borrowers are now having trouble meeting their new payment schedules.