CitiMortgage has announced the the Citi Disabled Veterans Mortgage Relief Program, a new initiative that will allow veterans wounded, injured or otherwise disabled in the line of duty to make reduced monthly payments on CitiMortgage-owned mortgages. The new program will offer an interest rate reduction of 2.5 percent on existing mortgages for a period of two years. Surviving spouses of military personnel who died while on active duty may also be eligible for the program.
The offer is part of the Citi Homeowner Assistance Program, which features a number of initiatives to help borrowers in hardship. Borrowers do not have to be delinquent or facing imminent default to participate in the program, and there are no fees to participate.
“At CitiMortgage, we are committed to helping serve the needs of current and former members of the armed forces,” said Sanjiv Das, chief executive officer of CitiMortgage. “We recognize that wounded or disabled veterans may be having financial difficulties in this challenging economic environment, and they warrant our heightened consideration. If they do not qualify for other assistance programs that are available, we are offering this program as another potential form of support.”
Homeowners are first evaluated for eligibility for a permanent mortgage modification. Those ineligible for a permanent loan modification may then be considered for the Disabled Veterans Mortgage Relief Program. CitiMortgage will bring qualifying clients’ loans current if they are delinquent by waiving outstanding late fees and forbearing all past due amounts and other uncollected fees. Program details:
►The program is being offered to veterans disabled, wounded or injured in the line of duty.
►Surviving spouses of military personnel who died while on active duty may also be eligible for the program, if they are co-borrowers on the loan.
►Applicants must provide their discharge documents and a letter from the Department of Veterans Affairs confirming they have a service-connected disability.
►The loan must be a first mortgage owned by CitiMortgage on the principal residence.
►The program is open to both current and delinquent borrowers.
►There is no requirement to prove financial hardship.
►Applicants must also sign the program agreement and, if they are currently delinquent, make one reduced payment before being enrolled.
►Federal Housing Administration (FHA), Veteran’s Affairs (VA), Rural Development and loans currently under the Servicemembers Civil Relief Act (SCRA) protection are not eligible for the program.
“IAVA [Iraq and Afghanistan Veterans of America] applauds Citi for its new Disabled Veterans Mortgage Relief Program," said IAVA Founder and Executive Director Paul Rieckhoff. "This program is a solid step towards helping our wounded warriors and their families who have sacrificed so much for our country. Foreclosure and unemployment have hit military families particularly hard in this economic crisis. IAVA and our 200,000 members nationwide welcome this initiative to support our community and we hope to see Citi's continued leadership in this space."