Citi to Allow Jobless to Pay Less on Loans

Now at first blush this sounds like a good thing, no? Why not help those poor people out of work who can't pay the mortgage on their McMansion? Why? Because this is a socialist program disguised as corporate generosity. This is a slippery slope my friends. How many unemployed who would otherwise use their savings to pay their mortgage will now stop paying so they can become 60 days late and then only pay $500 for three months? Hmm... do you think that since the U.S. Government just bailed out Citi to the tune of over $300 billion maybe Citi was forced to do this by the Obama Administration?-Lou

Citi to Allow Jobless to Pay Less on Loans

Citigroup announced Tuesday a new program aimed at addressing the latest challenge facing the mortgage industry: unemployed homeowners.

Under the program, Citigroup will temporarily lower mortgage payments to an average of $500 a month for certain borrowers who have recently lost their jobs and are at least 60 days behind on their mortgage payments. Borrowers will be allowed to make the lower payments for three months. Citigroup will waive interest and penalties during this period.

Citigroup's announcement comes days before the Obama administration is expected to announce guidelines for its massive loan-modification program, a cornerstone of its effort to fight the housing crisis. The bank's new initiative takes aim at one of the hardest groups of borrowers to assist: those who have seen their income fall sharply.

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