home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Predatory Lending News
FTC and HUD settlements. Class action lawsuits. Predatory lending prevention. Archives back to 2001.

ACORN, Citigroup Become Partners

Groups aim to advance home ownership

September 21, 2004


As ACORN goes after institutions it accuses of predatory lending such as Wells Fargo, it has formed an alliance to increase homeownership with a major New York-based bank that was previously involved in one of the largest consumer protection settlements.

The Association for Community Organizations Reform Now (ACORN) and Citigroup jointly announced yesterday a landmark partnership that they say will advance homeownership in low-and moderate-income neighborhoods, especially in immigrant communities, expand availability of affordable credit and promote financial education.

The groups have reportedly agreed to develop a specialized mortgage product for ACORN Housing Corp. homeownership centers, which make homes available by acquiring and rehabilitating abandoned buildings. They will also collaborate on offering home loans to immigrants who have previously been denied credit.

"With this agreement, ACORN will be able to expand our mission of strengthening communities by helping low-and moderate-income families, including new immigrants to this country, become homeowners," ACORN president Maude Hurde said in a written statement.

ACORN has long been a critic of many banks' lending practices. Over a year ago, the advocacy group started a campaign against Wells Fargo and its subprime financing unit accusing them of abusive lending practices and recently filed lawsuits in California and Illinois against the companies. ACORN also accused Household International and its subsidiaries of a wide range of fraud and misrepresentation in a class-action lawsuit that resulted in a nationwide settlement of $484 million.

In 2002, Citigroup, which in the joint announcement was described as "a key industry leader in responsible and innovative lending practices," paid $215 million to the Federal Trade Commission to resolve charges that a subprime finance company it had integrated into its subsidiary, CitiFinancial, engaged in widespread deceptive and abusive lending practices.

According to yesterday's announcement, CitiFinancial has done several changes to its real estate loan programs over the last three years such as halting the sale of single premium credit insurance, eliminating balloon payments, and capping points at three points. While CitiFinancial already offers loans without prepayment penalties, it has agreed with ACORN that, on real estate loans that do have such terms, it will reduce the amount of the prepay penalty in the second and third years, and will remove prepayment penalties after the third year.

"This is another strong step in Citigroup's responsible, fair, and innovative leadership in the industry," said Kevin Kessinger, a Citigroup consumer finance vice president, in the announcement. "By working together, Citigroup and ACORN can use the power of both organizations to improve the lives of our customers and create stable, healthy communities for the long term. This is the beginning of what we believe will be a long and successful relationship."

The two organizations said they will also collaborate to expand access to the Earned Income Tax Credit and that, in immigrant communities, they will expand access to Citigroup bank accounts designed for consumers who have not traditionally had banking relationships.

They will also work together in expanding education to low-and moderate-income consumers on saving, and obtaining and using credit wisely, the report said.

Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.

email: [email protected]

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders