Business Wire

June 12, 2003, Thursday

Citigroup and NACA Announce Groundbreaking $3 BillionNationwide Affordable Mortgage Commitment

Citigroup and the Neighborhood Assistance Corporation ofAmerica ("NACA"), one of the country's largest housing servicesorganizations, announced today a $3 billion 10-year commitment toaffordable mortgage lending.

These mortgages will be available to moderate-and-low-incomeborrowers who graduate from NACA's financial education andpreparedness program.

Under the terms of the commitment, NACA qualified borrowerswill benefit from lending terms which are among the best in themortgage industry, including:

NO - Down Payment NO - Closing Costs NO - Fees NO - PerfectCredit Required Affordable Interest Rate

Tens of thousands of hard-working families throughout thecountry will have an extraordinary opportunity for affordablehome ownership through this commitment between NACA andCitiMortgage, a subsidiary of Citigroup. NACA provides acomprehensive and rigorous home ownership program with one-on-onecounseling helping each homebuyer navigate through thechallenging process of securing an affordable mortgage. Theseservices are provided free for as long as it takes the buyer tobecome a homeowner. CitiMortgage's national presence and industryleadership will facilitate home ownership through the NACAprogram for many who would not otherwise have had the opportunityto own their own home.

This $3 billion mortgage lending commitment will primarilybenefit first time home buyers, but current homeowners, who areat risk of losing their homes or are facing financial distress,can seek to refinance with no fees, points or costs, at anaffordable interest rate.

"This agreement brings the weight of both organizations tochange mortgage lending in America," stated Bruce Marks, NACACEO. "It sounds too good to be true but the more one scratchesthe surface on this program the brighter it shines. In these hardeconomic times, CitiMortgage has set a new standard for a privatesector initiative that brings affordable home ownership toworking people."

"Improving neighborhoods by enhancing the supply of affordablehousing is one of our most important goals," said Ajay Banga,Citigroup's President of Retail Banking North America. "Every daywe work with a variety of community partners to help make thedream of home ownership a reality."

"We are excited about partnering with NACA because they havethe ability to identify potential customers and to get them readyfor home ownership," said David Schneider, President ofCitiMortgage. "Simply put, NACA is one of the most effectiveorganizations at getting people into homes and will be a strongpartner to work with to expand our distribution channel. Togetherwe are both striving to set a standard for affordable lendingnationwide."

In addition to this $3 billion mortgage lending commitment,NACA is working with CitiFinancial to evaluate and addresscustomer concerns and other lending issues. "We are pleased withthe initiatives that CitiFinancial has undertaken to implementsignificant policy changes and to raise the bar in the consumerfinance industry. We look forward to working with CitiFinancialin its efforts to continue to raise the bar for all consumers inthe consumer finance industry," continued Marks.

Home buyers workshops will be held Saturday, June 14th in NewYork City; Chicago; Los Angeles; Washington, DC; and Buffalo.CitiMortgage loans through NACA will also be availableimmediately in St. Louis; Baltimore; Birmingham, AL; Jackson, MS;Milwaukee; New Orleans; Oakland; and Sacramento. Loans will soonbe available in Southern Florida, Northern New Jersey, SouthernNevada, and Southern Connecticut as NACA expands into theseareas. Under the terms of the commitment, NACA can expand thisprogram throughout America in both urban and rural communitiesaround the country.

About Citigroup:

Citigroup (NYSE:C) is the preeminent global financial servicescompany with some 200 million customer accounts in more than 100countries, providing consumers, corporations, governments andinstitutions with a broad range of financial products andservices, including consumer banking and credit, corporate andinvestment banking, insurance, securities brokerage, and assetmanagement. Major brand names under Citigroup's trademark redumbrella include Citibank, CitiFinancial, Primerica, SmithBarney, Banamex, and Travelers Life and Annuity. Additionalinformation may be found at: www.citigroup.com.

About NACA:

NACA has been in the forefront of fighting predatory lendingfor over a decade and has brought the problem of abusive lendingto national attention. Through aggressive advocacy and top-levelhome ownership services, NACA has become one of the country'slargest housing services organizations. NACA provides refinancingto homeowners with high cost loans as well as first timehomebuyers. America's biggest lenders have committed $6.7 Billionin mortgage funding so that NACA can offer its Best in AmericaMortgage program nationwide. NACA currently has 30 officesthroughout the country and is rapidly expanding. For additionalinformation access our website at www.naca.com or to sign-up fora Home Buyer's Workshop call 1-888-302-6222.

CONTACT: NACA
Bruce Marks, w: 617/250-6230/ m: 617/835-4477
Steve Gold, w: 212/704-9974/ m: 617/821-4022
or
Citigroup
Steve Silverman, 212/793-0321
Anita Gupta, 212/559-0297

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