Citi announced a sweeping program to pinpoint and help potentially at-risk homeowners and help them stay in their homes. In the plan, announced late Monday night, Citi would also extend a moratorium on foreclosures and help at-risk debtors rework their loans into something more affordable.

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The move makes Citi the latest big bank to announce sweeping efforts to try to curtail losses from souring mortgages.

Under the new Citi Homeowner Assistance program, Citi will seek out a select group of 500,000 homeowners who are not currently behind on mortgage payments but may require help to stay in their homes.

"We will preemptively reach out to help at-risk homeowners before they become delinquent, which is critical to avoiding the loss of a home and protecting their credit score and future borrowing potential," said Sanjiv Das, CEO of CitiMortgage.

Citi estimated that the program will save about $20 billion in mortgage balances.

The program will also keep homes in its system from foreclosure as long as the borrower wants to stay in the house, is working with Citi and has sufficient income to continue making mortgage payments.

"We believe that focusing on homeowners who face extreme economic distress, including possible unemployment, versus those who hold certain types of mortgages -- and helping them over a significant length of time -- is the key to keeping people in their homes," said Das.

Citi also recently streamlined its existing loan modification program, which is similar to the FDIC/IndyMac model, to aggressively rework delinquent loans. This program uses a simplified formula to determine an affordable payment as a percentage of the borrower's gross income and then reduces the monthly payment to that amount through interest rate reduction, extension of term or forgiveness of principal.

Key elements of the program will include:

A dedicated team of trained counselors in Borrower Relief Centers that preemptively reach out to customers in debt to Citi. It is also working with other investors to include the program with loans it services but does not own

A concerted effort to reach these at-risk borrowers through calls, written correspondence, e-mail, toll-free assistance lines, online social networks and external counselors

A range of solutions for homeowners with reliable incomes to offer them affordable payment options to remain current on their payments, and in turn, in their homes

“The new Citi Homeowner Assistance program again demonstrates Citi's leadership on this issue," said Ken Wade, CEO at NeighborWorks America.

The nonprofit NeighborWorks America, created by Congress to help revitalize neighborhoods, says Citi's efforts are ahead of the curve.

"For NeighborWorks, Citi provides not only funding for our Center for Foreclosure Solutions, through which we reach at-risk borrowers facing foreclosure, but also expert personnel to train and assist community-based organizations that work with at-risk borrowers. I congratulate Citi for this latest, important step forward," said Wade.

Since early 2007, Citi said it has helped about 370,000 families avoid foreclosure on their homes through loan counseling, debt workshops, financial education and grants for low- and middle-income neighborhoods.

“We’re especially appreciative of the national and local community groups we’re working with on many fronts to reach distressed homeowners around the country," said Citi's Senior Vice President of Global Community Relations Eric Eve. "We believe at-risk borrowers should not have to wait until they are facing potential foreclosure before they become eligible for a loan modification or a foreclosure pause."