Citi Pilots Mortgage-to-Lease Program in Six Troubled Markets
Citigroup (NYSE: C) has launched a new Mortgage-to-Lease Pilot Program with Carrington Capital Management to support struggling homeowners. The initiative aims to help families remain in their homes by converting their mortgage payments into rent.
How the Home Rental Program Works
Announced on Wednesday, the Home Rental Program offers a practical alternative for borrowers who have fallen behind on their mortgage payments. Rather than facing foreclosure, homeowners can transfer ownership of their property to the bank and continue living there by paying monthly rent.
In addition, Carrington Capital and its partner Oaktree Capital Management will take over property ownership and handle loan management. To fund the effort, CitiMortgage has sold $158 million worth of mortgages to both firms.
A Step Toward Reducing Foreclosures
Furthermore, Sanjiv Das, CEO of CitiMortgage, emphasized the program’s human impact. “Simplifying the process for homeowners is a key priority,” he said. “This initiative gives borrowers a chance to stay in their homes and avoid the emotional and financial stress of foreclosure.”
Partnering for Expertise
To strengthen the program’s operations, Citigroup collaborated with Carrington, known for its strong property management experience. Mr. Das explained, “Property management isn’t Citi’s primary expertise. Therefore, we chose Carrington, one of the best in the industry, to ensure the program’s success.”
