CitiMortgage plans to launch a new program that will allow veterans who were wounded, injured or otherwise disabled in the line of duty to make reduced monthly payments on CitiMortgage-owned mortgages.
The Citi Disabled Veterans Mortgage Relief Program will offer an interest-rate reduction of 2.5% 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 if they are co-borrowers on the loan.
The bank will consider military borrowers for the program if a borrower is ineligible for a permanent loan modification. Under the newly announced initiative, 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.
"We recognize that wounded or disabled veterans may be having financial difficulties in this challenging economic environment, and they warrant our heightened consideration,’ says Sanjiv Das, CEO of CitiMortgage. ‘If they do not qualify for other assistance programs that are available, we are offering this program as another potential form of support."
Applicants must provide their discharge documents and a letter from the Department of Veterans Affairs (VA) confirming they have a service-connected disability, though there is no requirement for borrowers to provide financial hardship.
Federal Housing Administration, VA and Rural Development loans, as well as loans currently under the Servicemembers Civil Relief Act (SCRA) protection, are not eligible for the program.
Is this program still in effect?