This issue of Mortgage Update contains news and updates on foreclosure assistance programs for

borrowers with mortgages issued through Citigroup, and most other mortgages that are owned or guaranteed by Fannie Mae and Freddie Mac.

KEEP THIS IN MIND

• Citigroup is expanding its foreclosure prevention efforts by establishing a new program, Citi

Homeowner Assistance Program, which only is available to homeowners who are current on their

mortgage payments, but at risk of defaulting. Citi Homeownership Assistance Program will reduce

monthly payments, including property taxes and insurance, to 40 percent or less of the borrower’s

income. The mortgage modification program will freeze or reduce interest rates, extend the terms

of the loan, and possibly reduce the loan principal.

To read the full story, please click here:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aXh_NhG7OLoY&refer=home

• The Federal Housing Finance Agency (FHFA) this week announced a new government program to

help mitigate foreclosures on loans owned or guaranteed by Fannie Mae and Freddie Mac. The

program is targeted toward borrowers who are at least 90 days delinquent in their mortgage

payments and have a high loan-to-value ratio. Reduced interest rates and longer terms of as much

as 40 years may be offered to qualified borrowers. Some economists believe that areas such as

California, Florida, and other high-cost areas will benefit the most from the program due to larger

debt loads and higher rates of nontraditional mortgages.

To read the full story, please click here:

http://money.cnn.com/2008/11/10/real_estate/Citi_steps_up_foreclosure_help/index.htm