Citibank's Gift for the Holidays

by Brian Johnson on December 21, 2009

giftCitibank is suspending foreclosures and evictions for the holiday season.  For 30 days, from December 18th through January 17th, Citibank is offering a reprieve to borrowers whose loans are owned by Citibank Corporation.  The company reports that it will help about 4,000 borrowers who are either scheduled to be evicted, or scheduled to receive notice of eviction during this period.

Citibank deserves to be commended for this act.  In the general state of the American economy as it stands right now, lending institutions are placed in a precarious position where they have to implement tough policies to keep their businesses afloat.  It seems that Americans are increasingly turning to lending institutions as a solution to this recession as well as a scapegoat for this nation’s economic troubles.  All too often we hear that either our economic crisis was the result of banks giving out bad loans (which it was), or that economic recovery depends on lenders lowering the minimum requirements for loan qualification (which it does not).

This reprieve given by Citibank won’t cost the company much.  The market for foreclosed houses isn’t very strong in December even in those years when it isn’t glutted as it is now.  There is little chance that Citibank would sell those homes were they to foreclose on them tomorrow.  Still, for the people who will not have to lose their houses during the holidays, the reprieve is, I’m sure, quite appreciated.  It’s an act of generosity that Citibank didn’t have to do, but they did it anyway.  It is a sign of compassion from an industry that is, all too often, depicted as cold and ruthless…

Discussion

Hanoch
Very nice. Maybe they should focus next on doing something for their long-suffering shareholders.
December 23 at 21:18 pm

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