Loan benefits can be shifted by 'portable' plan

October 14, 1990|By Gene Austin | Gene Austin,Knight-Ridder News Service

A pilot program by Citicorp takes the mortgage industry a step closer to a portable mortgage -- a loan the terms of which can be taken along and applied to another home if the mortgage holder sells and moves.

"Basically, what we're doing is offering some portable benefits, not actually a portable mortgage," said Betsy Martin of Citicorp Mortgage, based in St. Louis. "You don't have to start from scratch and worry about credit approval again."

Ms. Martin said the package of portable mortgage benefits was being offered by the central St. Louis office to selected Citicorp customers as an experiment.

Ms. Martin and Sylvia Reynolds, director of marketing and development for Citicorp, said the program works like this:

Once a borrower is approved for a Citicorp mortgage, future mortgages from Citicorp will be available without the need to repeat the documentation and approval process associated with obtaining many mortgages. If the borrower has a good record of payment on the original loan, Citicorp's files on the applicant will be updated by a simple process when a new mortgage request is received.

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