Thursday, October 13, 2011

Rating Citi's Mortgage Loan Modification Performance


Rating Citi's Mortgage Loan Modification Performance

 For a 2 minute video of this blog, please click here: Citi Mortgage's HAMP Performance.

 CitiMortgage's performance in assisting distressed homeowners was ranked as average among large mortgage loan servicers, according to the Federal Government's most recent report. The Making Homes Affordable ("MHA") Final Report for the second quarter of 2011 states that Citi's performance is in need of "moderate" improvement. Let's take a closer look at how Citi performed in five (5) key categories, with all the information below based on conclusions by the Federal Government.

1.  Did Citi effectively follow guidelines for identifying and contacting homeowners who may be eligible for the Home Affordable Modification Program ("HAMP")?  No. Citi did not meet the required standards, with moderate improvement needed.

2.  Did Citi effectively follow guidelines for evaluating and assisting homeowners?  Yes. Citi met the required standards. However, minor improvement may be indicated.

3.  Did Citi effectively follow guidelines for general program management, program data reporting, and program compliance?  No. Citi did not meet the required standards, with substantial improvement needed.

4.  How often did Citi make errors greater than 5% in calculating the homeowner applicant's income (a crucial factor in determining eligibility for a HAMP mortgage loan modification)?  This occurred 12.0% of the time, placing Citi into the worst category, with substantial improvement needed.

5.  How often did the Federal Government disagree with Citi as to whether a homeowner was eligible for a permanent HAMP mortgage loan modification?  The Government disagreed with Citi on this issue only 0.5% of the time and concluded that Citi was performing adequately by this measurement. Additionally, 5.5% of the time, the Government was unable to determine whether Citi made the correct determination on a homeowner’s eligibility.

Conclusion: President Obama's administration has concluded that Citi requires moderate improvement in its performance as a mortgage loan servicer participating in HAMP, and that the Federal Government will not withhold incentives until improvement is shown.

McGrath & Spielberger provides legal services in an attempt to assist borrowers seeking mortgage loan modifications or other mortgage - related relief.