Citibank took a bold step to solidify and quell the concerns of its mortgagors by halting foreclosures, and voluntarily considering how to modify the terms of its mortgages on a wholescale scale.
According to the WSJournal, the US Government is considering various ways to fix the problem from the top down, rather than having to modify each and every loan on each and every house. Other top lenders are seeking to avoid such intervention by the government, including Bank of America Corp., J.P. Morgan Chase & Co. and Citigroup Inc., the banking industry has announced measures to make loans more affordable. Citi said Tuesday it would modify terms on as much as $20 billion in mortgages for borrowers who are current on their loan payments but could fall behind. Here’s the article.