WASHINGTON — The government’s multibillion-dollar bailout of Citigroup requires the giant financial-services company to lower loan rates for struggling homebuyers who are behind on their mortgage payments.
Borrowers whose loans are in a $306 billion pool of Citigroup assets that have new government backing may qualify for a reduction on their payment to 38 percent of their monthly income.
As of late Monday, neither the government nor Citibank could provide an estimate on how many borrowers may qualify for assistance. Potentially, hundreds of thousands of borrowers could be helped.
The loan-modification requirement was part of a complex deal worked out between federal regulators and Citigroup, based on a model created by the Federal Deposit Insurance Corp. The Associated Press
