As we mentioned when we launched a few weeks ago, some of the questions we get will be answered in separate blog posts as opposed to in the comments section. Our reason for this is that a lot of the questions bring up opportunities for us to explain how the process works, and we want to make sure as many people see it, and it is easier to find if you want to refer to it later.

The first question we want to answer comes from a homeowner in Florida:

"I have been with Citimortgage for over 10 years - at least, I thought I was. When my husband got fired last October, I called to see if I could get my payments lowered. Citi lowered them for 6 months. I made my regular monthly payments for May and June. Then, I began receiving phone calls from Citi. They said I owed them $1,700.00 in late fees! I explained to them that my husband was still not working, I didn't have that kind of money. They mentioned something about foreclosure. To make matters worse, I'm a waitress in the oil spill area of Florida. It has affected my tips terribly. I told this to the man I talked to last night...he tried to help me, then told me Citi didn't own my mortgage--another company did! So, now I'm wondering why I have been making my checks out to Citimortgage every month! Is this a question better addressed to the BBB? No one ever told me my mortgage was held by a different company. I would think I should have the right to know that! I bought this house as a VA repo in 1989, FHA loan at a fixed 8.9%. I have been paying on this house for 21 years...only 9 years to go, and the people I've been paying for so long won't help me! My house is old, and isn't worth much, but it means a lot to me. I bought it as a single mother, raised my 3 kids here. My only son died at age 21. I scattered his ashes amongst the trees and bushes we planted around this house when he was a little boy. This is where I want to be when it's my time to go...with my son! I told that to a Citi rep the other night, and she hung up on me! I'm almost 57, my husband, 61. I can't work for much longer due to health issues. My husband served our country for 20 years in the USAF! All I'm asking Citimortgage is to PLEASE do all you can to keep me in my home until it's my time to pass on! PLEASE!!!"

First, I want apologize if you received less than the high customer service process we expect of ourselves. I've forwarded the issue to the appropriate management for review.

I can't speak to your account specifically in a public forum, but I did want to talk generally about your question about loan ownership.

While CitiMortgage does originate many mortgages and keeps some of them on its books as owned loans, the majority of loans we and other lenders originate in the US housing market are sold to investors such as the government-sponsored entities Fannie Mae and Freddie Mac.  In some instances, loans are pooled into an investment security called a Mortgage Backed Security and sold to private investors, such as mutual funds, pension funds and other private investors.  This frees up capital for lenders so they can continue making new loans.  Mortgage companies like CitiMortgage handle the servicing of these loans on behalf of investors. Our services include managing your mortgage account, sending you statements, and in many cases, setting up and paying taxes and insurance, all based on the guidelines of the investor. As the servicer of your mortgage, you are our customers, but the underlying loan is owned by the investor and we must act under the rules they have established. Many loans have additional considerations. For instance, loans such as VA, FHA and Ginnie Mae guaranteed loans also have guidelines that we must adhere to.

One of the complications from this system is that when a customer such as yourself calls in asking for a modification, it's not always up to us to be able to change the loan as we see fit. If the actual loan belongs to an investor or has other guidelines, then we are bound by their rules on what we can and cannot do in terms of a modification.

As I said, you should be hearing from us soon if you haven't already, and I really do hope we can find a solution that works for you under the options available to us.