Citi suspends foreclosures during holidays, raises funds to exit TARP

Citigroup announced today that it will suspend foreclosure sales and distribution of foreclosure notices between Dec. 18 and Jan.17, giving its customers a break for the holidays. For 30 days, the bank will not hassle its distressed customers with first mortgage loans held by Citigroup and CitiFinancial North. The suspension will affect nearly 4,000 homeowners who were set to either have a foreclosure sale or receive a foreclosure notice during that period, which amounts to nearly 20 percent of the company’s $746 billion mortgage portfolio, according to Citigroup. The 30-day suspension announcement came one day after the Treasury Department said it would not sell any of its stock in connection with Citigroup’s offerings, disputing earlier reports that it would sell up to $5 billion of its shares when the bank completed its new stock offering. The decision subsequently caused stocks to drop 7 percent to $3.22. However, Citigroup, which has been one of the largest recipients of government aid, has reported that it has raised the $20.5 billion it needs to exit TARP. [CNN]