Ahead of the Bell: Housing woes continue

Citigroup said Monday it is imposing a moratorium on most foreclosures as part of a series of efforts aimed at helping struggling borrowers stay in their homes.

Other national banks have initiated similar programs as more than 4 million homeowners are behind on their mortgage payments.

JPMorgan Chase & Co. expanded its workout program late last month to an estimated $70 billion in loans, while Bank of America Corp. has said it will modify an estimated 400,000 loans held by newly acquired Countrywide Financial Corp. starting Dec. 1.

The government is also working on an ambitious plan to help around 3 million borrowers avoid foreclosure, but details have yet to be announced.

Citigroup's move comes after mortgage-finance giant Fannie Mae said Monday it recorded a $29 billion loss in the third quarter and warned its $100 billion lifeline from the government may not be enough for its solvency should it continue to lose money. Fannie Mae and brother company Freddie Mac own or guarantee around half of U.S. home loans.

Meanwhile, Toll Brothers Inc. and Beazer Homes USA Inc. both said that worsening economic and credit conditions and slumping consumer confidence battered their quarterly results.

Luxury homebuilder Toll Brothers said Tuesday its fiscal fourth-quarter home building revenue dropped 41 percent, while Beazer said Monday that home closings in the fiscal fourth quarter declined.

In premarket trading Tuesday, Toll Brothers' shares dipped 80 cents to $18.15, while Beazer was essentially unchanged at $2.36.

"At this stage there is little doubt that a weakening economy represents a significant threat to homebuilding demand, even at the historically low levels it has already reached," said Deutsche Bank Securities Inc. analyst Nishu Sood in an analyst note Tuesday.