Qualified homeowners hoping to refinance and take advantage of today’s extremely low current mortgage rates have been given a boost by Citigroup’s announcement to lend $1 billion in mortgage loans on primary residences. Citi’s announcement comes on the heals of TARP stress test results that revealed the lending giant will need $5.5 billion in additional funds in order to endure any further ominous economic conditions that have been projected by federal regulators.
Additionally, Citi announced that they have already committed $8.2 billion to the economy as of the end of March, essentially to buy mortgage securities on the secondary market, while freeing capital to be lent. Citi executives claim to have averted as many as 80,000 foreclosures in the first quarter of 2009 alone, totaling over $50 billion. Citi’s ratio for solutions to foreclosures has been compiled at 10:1.
Citi also intends to lend up to $5 billion to local and state governments, nonprofit hospitals and universities to fund projects aimed at creating jobs and stimulating economic growth. Furthermore, Citi is prepared to pledge $2 billion for supplier financing and providing liquidity to small-to-medium-sized companies. Finally, Citi intends to lend $250 million to consumers through auto dealerships nationwide.
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