More Mortgage Modifications

Tuesday November 11, 2008

More homeowners are in luck. Citi, Fannie, and Freddie all announced plans to modify more mortgages in an attempt to end the mortgage crisis.

Fannie and Freddie want to make sure that no more than 38% of a homeowner's income goes to the mortgage payment. They urge private banks to do the same (see details).

Citi plans to reach out to 500,000 homeowners in hard-hit geographic areas. This is a proactive approach designed to keep borrowers from missing payments and dinging up their credit. They have also halted foreclosures on owner-occupied homes (see details).

Regulators have urged banks offer mortgage help on their own, suggesting that it's in everybody's best interests to do so. It looks like Citi is on board with them.