Citigroup said today that loss mitigation efforts outnumbered completed foreclosures by 15 to 1 in the third quarter.
That’s nearly four times the rate seen a year earlier; 130,000 homeowners with mortgages valued at more than $20 billion were able to avoid foreclosure during the three-month period.
Total loss mitigation efforts (which includes things like short sales) were up 85 percent from the same period in 2008, thanks in part to the bank’s “Citi Homeowners Assistance Program” and the “Citi Unemployment Assist Program.”
As of October 31, the bank and mortgage lender had also begun trial loan modifications for 40 percent of HAMP-eligible borrowers, the highest proportion of the largest commercial bank mortgage servicers.
“We recognize the difficulties that homeowners face in the current economic environment and our number one priority is to help keep homeownership a reality for our customers who find themselves in financial distress,” said Sanjiv Das, President and Chief Executive Officer of CitiMortgage, in a press release.
“As the economy remains challenged amid rising home foreclosures, Citi has stepped up its efforts to assist its customers through increased staffing and enhanced programs designed to develop individualized solutions to allow families in financial distress to keep their homes.”
CitiMortgage continues to originate new loans as well, though at a much slower clip, with approximately $14 billion in loan volume during the third quarter.
The company refinanced 47,000 first mortgages during that time, which is well behind the pace of market leaders Bank of America and Wells Fargo.
Check out this nifty chart detailing their loan modification re-default rate: