2012 Updates

Good news for Citimortgage loan modification applicants-the program guidelines have been updated and it is now a bit easier to get approved.  Effective June 2012, the FED has relaxed the strict criteria for acceptance and has implemented a few other protections for borrowers trying to avoid foreclosure.  The low numbers of completed loan mods has been disappointing, and hopefully these new guidelines will offer assistance to more borrowers.


  1. Debt to Income Ratio Expanded:  previously the current mortgage expenses had to exceed 31% of the borrowers gross monthly income, and the NEW target payment had to be 31%.  That was such a narrow window that it has now been expanded to between 22-42% for the new target payment calculation.
  2. Single point of contact:  each application will be assigned a single person to handle their file-this will speed up timelines and also avoid misinformation and lost paperwork, a major point of frustration for borrowers.
  3. Dual Tracking Restrictions:  the bank will not be allowed to simultaneously move a home to foreclosure while reviewing a homeowner for a loan modification.
  4. Higher Incentives to the Bank:  Citimortgage will now be paid more money by the Treasury Dept for every loan mod completed, and for every second lien that is modified as well.
  5. Principal Reductions:  servicer incentives have been increased to encourage principal balance reductions for underwater homeowners
  6. Faster Response Times:  the bank must now respond within 30 days of receipt of your loan mod application

A Citimortgage loan modification could be the answer that will help you keep your home-a new lower mortgage payment and a lower loan balance offers a fresh start and will help stabilize the overall housing market.  Unfortunately, the entire application process can be confusing and frustrating, and although these new 2012 Updates are helpful, they do guarantee approval.

Homeowners who apply for a Citimortgage loan mod need to understand exactly what they need to report for their monthly income, monthly expenses and assets.  This financial information is a critical part of the approval formula used by the bank.   Each and every application will be reviewed to determine if the homeowner meets the standard approval criteria for debt ratio, asset ratio, cash flow and Waterfall Modification.  If you do not know how to prepare your financial worksheet correctly, chances are you will not pass this criteria.  It makes sense to take the time to learn ahead of time exactly what Citimortgage needs to see on your application, guessing is just too risky.

Get the real answers and real help you need to succeed with your loan mod-use the #1 selling resource for homeowners.  The Complete Loan Modification Guide kit and

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Loan Mod Calculator will automatically compute and display your very own specific requirements for income, expenses and assets.  Learn exactly what you need to show on your financial worksheet so that you can make any needed adjustments to your budget before you submit it for review.  Visit MyLoanModificationCenter.com today.

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