Magazine article Mortgage Banking

CitiMortgage/Carrington Launch Pilot of Home Rental Program

Magazine article Mortgage Banking

CitiMortgage/Carrington Launch Pilot of Home Rental Program

Article excerpt

CitiMortgage announced on Aug. 8 it was launching a Home Rental Program to be managed by Carrington Capital Management LLC and Carrington Mortgage Services LLC. The pilot program will be tested in six markets to evaluate its effectiveness, according to a press release. The markets are in Arizona, California, Texas, Florida, Nevada and Georgia.

Carrington will contact homeowners who meet the eligibility requirements and are interested in entering into a deed-for-lease home agreement that allows them to stay in their homes by signing a lease. The pilot program will be offered to roughly 500 homeowners.

To be eligible, borrowers must 1) be unable or ineligible to receive an affordable modification but have resources to make rent payments; 2) have a loan in the pilot portfolio serviced by Carrington; 3) occupy the property; 4) owe more than their home is worth; and 5) be delinquent for 120 days.

Lease payments will be determined by local market rates, according to the press announcement, but are expected to be less than the borrower's current monthly mortgage amount. A press release noted that Carrington would work with borrowers to establish the optimal length for each lease. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.