This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Citigroup to Offer Second Mortgage Help

NEW YORK ( TheStreet) -- Citigroup (C - Get Report) has joined other large banks like JPMorgan Chase (JPM - Get Report), Wells Fargo (WFC) and Bank of America (BAC) in participation of the government's 2MP program, which will help struggling borrowers modify second mortgages through the Home Affordable Mortgage Program.

Citigroup, one of the largest mortgage servicers in the U.S., says it is committed to keeping families in their homes.

"It is our priority and commitment at Citi to help homeowners in need," CEO Vikram Pandit said in a statement on Thursday. "The 2MP program will further improve the affordability on mortgages and help families facing financial distress stay in their homes."

JPMorgan Chase announced on Monday that it would participate in the 2MP program, which is designed to work in tandem with HAMP to lower homeowners' payments on both their first and second mortgages, such as home equity loans.

Under the second lien program, borrowers may see the interest rate on the second mortgages reduced as low as 1% for five years. The program also provides a financial incentive to borrowers, servicers and investors if the modification is successful, JPMorgan Chase said.

To qualify, homeowners must successfully complete a trial modification on their first mortgage, JPMorgan Chase says. When it implements 2MP, Chase will seek to modify second liens whether the first loan is serviced by Chase or by another loan servicer.

Last year, Chase offered 600,000 loan modifications to homeowners. It also has opened dozens of Chase Homeownership Centers to provide face-to-face loan counseling to struggling homeowners and will have a total of 51 centers by this spring, the company said.

Citigroup has helped more than 825,000 families avoid foreclosure since 2007, through various programs both via the government and its own solutions, such as the Citi Homeowner's Assistance Program, the Citi Unemployment Assist Program and most recently, the launch of the Citi Foreclosure Alternatives Program, it says.

Citigroup shares were up 3% to $4.286 at the open.

--Written by Laurie Kulikowski in New York.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
C $46.28 0.00%
JPM $63.20 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs