In response to guidance from four federal agencies, Citigroup reclassified $840 million in home equity loans as “nonaccruing” in the first quarter because the first mortgages are more than 90 days delinquent.

To get a head start on the national mortgage servicing settlement, the third-biggest U.S. bank also wrote down $370 million worth of mortgages and released about $350 million in loan reserves to account for principal forgiveness.

Source: “Citi Reclassifies Some Mortgages, Starts Taking Principal Writedowns,” American Banker (March 17, 2012)