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Citi Rolls Out Mortgage Relief Program for Disabled Veterans

Disabled veterans with Citi-owned mortgages may be able to tap into a special relief program recently announced by the financial giant.

The program cuts interest rates for eligible service members and waives late fees and other past due amounts. The 2.5 percent rate reduction covers a two-year window.

Service members are required to provide documentation confirming their service-connected disability. The program is open to disabled veterans regardless of financial hardship, although Citi will first evaluate applicants for a permanent mortgage modification. Those who aren’t eligible for the permanent modification can qualify for the special veterans program.

Surviving spouses are also eligible for participation, provided they are named as co-borrowers on a Citi-backed first mortgage.

“We recognize that disabled veterans may be having financial difficulties in this challenging economic environment, and they warrant our heightened consideration,” Sanjiv Das, CEO of CitiMortgage, said in a news release. “If they do not qualify for other assistance programs that are available, we are offering this program as another potential form of support.”

Military members with a government-backed mortgage (FHA, VA, USDA) or one that’s currently governed by the Servicemembers Civil Relief Act are not eligible to participate in the program.


To learn more, borrowers can contact CitiMortgage at 1-800-283-7918.

The relief program from Citi comes as financial institutions are facing greater pressure to ensure military borrowers are in good hands.

JP Morgan Chase announced in April it would pay $56 million to settle claims that it flouted federal law by overcharging military borrowers and improperly foreclosing on about a dozen.

In addition, a recent Government Accountability Office report showed that two huge mortgage banks improperly foreclosed on nearly 50 active duty service members. Regulators found the fraudulent foreclosures during an analysis of a mere 2,800 loans that went into foreclosure last year. The report didn’t name the two companies.

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About the author: Chris Birk writes about real estate and the mortgage industry for a host of sites and publications, from Lenderama and Bigger Pockets to the Huffington Post and Motley Fool. A former newspaper and magazine writer, he is also content director for a leading VA lender. Follow him on Google+.

 

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