Citigroup Leading the Foreclosure Prevention Edge

According to Zacks.com and reports in Reuters yesterday, Citigroup is leading the pack in helping homeowners avoid foreclosure. They have DOUBLED their loss mitigation success rate in the last 6 months. Whether a short sale or loan modification, borrowers can expect that at least 1 out of 6 will get to the finish line on the first run. This new success rate has reportedly helped over 108,000 homeowners avoid potential foreclosure at a total loan bill over billion. Impressive even more so is that they have successfully granted loan mods to a greater percentage of qualified borrowers than their leading lending competitors while simultaneously decreasing the re-default rate. The number of homeowners that end-up back in default on a loan mod after the first 30 days has decreased over 4% in the last 6 months. How did they create better results than other lenders? They increased their loss mitigation staff by over 1400, implemented better training for their staff total of 4000, implemented more efficient review processes, and added to their phone lines and infrastructure. Other lenders need to take heed and follow suit. It is imperative that everything is done to prevent home foreclosure from the lending front. Wednesday, August 26, 2009.

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3. 2nd Quarter 2009 Foreclosure and Delinquency Stats