This letter has been sent to fed, State agencies, the OIG, FannieMae, and Obama's Office.
July 31, 2009
Dear Sirs,
I am issuing a complaint about the recent Mortgage Outreach Program, a part of CitiMortgage’s Loss Mitigation Department. They have misrepresented details of this program or are sorely inept in the execution of the program and have thus destroyed my previous excellent credit!
In February, 2009, a representative of CitiMortgage’s Mortgage Outreach Program, a part of their Loss Mitigation Department, contacted me to offer a new program to assist homeowners who are feeling the financial pinch of the current economic recession, but who are not yet in default on their current CitiMortgage mortgages.
The representative offered me a partial payment program for which I qualified. I was to be on reduced payments for mortgages on two separate homes for three months, at the end of which time I would resume the original monthly mortgage payment and also pay a balloon payment to cover the sum of the monthly payment reductions. I was assured at this time that, because this was a forbearance plan, the reduced payments would not cause CitiMortgage to report negatively on my credit reports or to foreclose on my property while I was on the plan. I would not have agreed to participate in a plan that would damage my long-term excellent credit. I was later informed that the program had changed and that after prompt monthly payments for three months, I would qualify for a program offering lower long-term interest rates on these mortgages.
Within a few weeks after the first call, I was to receive documents to read and sign relating to the first program, which was to begin on March 30, 2009. When CitiMortgage Outreach did not send papers, I called repeatedly and was always promised that the papers would be sent. I was eventually advised by a representative that the beginning payment date was changed to April 30, 2009, and that I did not need to make a payment until then. I never did receive the promised documents for this program; however, CitMortgage did receive all my monthly payments on time and verified this when I called them monthly, as no statements were ever sent. I was also advised that the Outreach Program was so new and the guidelines changing weekly that confusion reigned, and many things were overlooked.
In June, 2009, CitMortgage Outreach contacted me again to indicate that my prompt payments now qualified me for the HomeSaver Advance Program for one mortgage, to begin August 1, 2009, and the Home Affordable Modification Plan for the other, for which I was to receive paperwork indicating the first payment due on August 15, 2009.
Of great significance, however, was that I was assured repeatedly by CitiMortgage Outreach representatives and Loss Mitigation representatives that no action would be taken to report negatively on my credit reports or to foreclose on my property. Only CitiMortgage would note in their records that I was on a forbearance plan and paying as agreed. My credit rating would not be affected. Had there been a chance that my credit rating could be compromised, I would not have agreed to participate.
During the last twenty years I have maintained excellent credit and enjoyed having my credit limits increase yearly. Most of my credit cards were at a $25,000 limit, and none under $9,000. I have also enjoyed frequent offers of lower interest rates based on my good credit.
In mid July, 2009, I began to receive letters from creditors who were now either cancelling my credit or reducing it to $500.00 The most recent from Bank of America cancelled one card and reduced the credit line on the other from over $25,000 to $500 because of a “major derogatory record on your credit file.” Checking my credit reports, I discovered that the only two negative reports on all three major credit reports were from CitiMortgage, who had reported me to be delinquent for 60 to 90 days on the two mortgages.
Today, more than any time in our history, good credit is a gold standard of economic sustainability. I have always maintained excellent credit, even during this trying economic time. Though I live on a meager retirement and savings, I have managed to maintain an excellent credit rating. That credit rating has now been destroyed by CitiMortgage’s negative reports to the credit bureaus.
Once again, I must stress that every person with whom I spoke during the presentation and fulfillment of the lower payment offering, insured me that may credit rating would not be affected. I asked that question many times, only to be assured that my credit would be fine.
The Mortgage Outreach program was offered to me, because I was current on my mortgage and had no delinquencies on it or any other credit accounts. It was, according to the ideals expressed by President Obama, a means to help individuals before they had to suffer the consequences of delinquencies that would impair their credit or cause them to lose their home. Yet, it appears that this program, instead of helping to prevent this from occurring, actually causes the individual who has excellent credit to have it ruined! Certainly, this is not the spirit of the money infused into these programs to help citizens and the economy!
Perhaps it was the incompetency of the bank management, or the program workers, or the speed at which they had to ramp up the program that has caused this damage. I don’t know and don’t care about the cause. I only know that I was lied to and duped into a program that has ruined my credit, and thus my future financial security. I need to have my credit rating re-established NOW!
CitiMortgage misrepresented the program, lied directly to me, and now I have suffered irreparable damage to a great credit standing for which I worked for years as a single, working mother to achieve. I am 62 years old, living on retirement income, suffer pre-existing health conditions for which I pay extravagant insurance fees , and I have no other means to correct this travesty and rebuild my credit in my lifetime.
May I hear from you?
Joanne E. Gregory 3206 Lamond Ct
San Jose, CA 95148
559-917-2886
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