In the Making Home Affordable Program, two big lending institutions, Bank of America and CitiGroup are seen as opposites in terms of homeowners they have helped. While CitiGroup has been said to be one of the best lenders and has helped almost half of it potential borrowers, Bank of America had been criticized for its lack of customer service to homeowners and unwillingness to make for home loan modifications.
However, the two institutions differ in another way that could be seen in 2010 if reports are correct. Bank of America has promised to promote more small business lending to consumers while CitiGroup is saying they will be cutting from their budget and over the last two years have fired over 100,000 workers worldwide.
Understandably, these worldwide layoffs don’t all affect the United States economy, but with plans to cut more money from their budget will there be more layoffs? While Bank of America states they will lend small businesses more capital to start or grow, which is said to be an ally in correcting the unemployment problem, one wonders if CitiGroup will follow just the same.
Bank of America has only made the statement they will hire more, so we will have to wait and see if they follow through, but with CitiGroup’s track record of helping homeowners in need in the home loan modification program and suspending foreclosures until the middle of January 2010, we must see if they too will keep up their track record of helping the economy.
Both Bank of America and CitiGroup have their faults and strengths in programs like the Making Home Affordable home loan modification program, as well as, loans to small businesses. In 2010, though, institutions will have to step up even more to aid homeowners and the economy dig out of the recession aftermath caused by big lending institutions.
