Citi U.S. Mortgage Lending Data
and Servicing Foreclosure
Prevention Efforts
Third Quarter 2008
EXECUTIVE SUMMARY
In February 2008, we published our initial data report on Citi’s U.S. mortgage lending
businesses, which included our experience with foreclosure prevention programs,
through the fourth quarter of 2007. This is our fourth report, covering our experience
through the end of the third quarter of 2008. We believe these data are important to
understanding the scope and dynamics related to the foreclosure challenges facing the
country, and we continue to encourage others to follow our lead and publish company
level data on their experience. As in our initial report, we have chosen not to use labels
such as "prime" and "subprime" because there is no industry accepted definition of
those terms. Instead, we have presented the data using objective criteria, segmenting it
into three FICO bands (≥660, 620-659 and <620).
Key Findings:
Loss mitigation solutions for Citi’s U.S. mortgage lending businesses
remained favorable in the third quarter of 2008, with loss mitigation successes
outnumbering foreclosures completed by a ratio of more than four to one.
Total loss mitigation solutions increased 25% from the second quarter of 2008 to the
third quarter of 2008.
Almost all loans serviced by Citi -- approximately 99% -- had not experienced loss
mitigation actions or completed foreclosures at the end of the third quarter of 2008.
Only 1% of all loans serviced by Citi were in loss mitigation or foreclosure completed
status at the end of the quarter.
Overall, foreclosures and delinquencies continued to trend upward as evidenced by
an increase in 90+ days past due delinquencies to 3.0% in Citi’s servicing portfolio
for first and second mortgages.
Foreclosures in process inventory for loans serviced by Citi has generally increased
over the previous four quarters; however, it was down somewhat in the third quarter
of 2008 as compared with the se