The Real Deal Miami

Citigroup enlists in Obama’s piggyback mortgage mod program

March 25, 2010 12:22PM

Citigroup is joining Bank of America and JPMorgan Chase in the Obama administration’s second mortgage modification program, the company announced today. The program, part of the government’s $75 billion loan help plan, is aimed at so-called piggyback lenders, or those who granted loans to even the least credit-worthy customers for their down payments during the housing boom. Participating lenders will be given incentives to lower payments on second mortgages or to eliminate them entirely. The hope is that lenders who have resisted modifying primary mortgages because they didn’t want to be stiffed on their piggyback loans will now be more willing to grant modifications. Citigroup is already a participant in Obama’s Home Affordable Mortgage Program, which targets primary mortgages. [AP via Crain’s]