Major banks held in exchange traded funds (ETFs) are targeting at-risk borrowers with Citigroup Inc. (C) taking the lead. They and other banks are adopting initiatives aimed at keeping borrowers in their home and money in the markets.

Banks such as JP Morgan Chase & Co. (JPM) and Bank of America Corp. (BAC) have become more aggressive about modifying mortgage agreements. The government is also working on an ambitious plan to help around 3 million borrowers avoid foreclosure, but details have yet to be released, reports Sarah Lepro for Associated Press.

At the end of June, more than 4 million Americans were one payment behind on their mortgage. Citigroup also stated they are aiming to expand their program to mortgages their bank services but does not own, as well as helping 500,000 homeowners who could need help down the line.

Despite the quick action, stocks are continuing their downward momentum as the housing market and consumerism becomes weak.

Homebuilder Toll Brothers Inc. (TOL) and coffee chain Starbucks Corp. (SBUX) helped send Wall Street sharply lower Tuesday after giving investors more evidence that the housing market and consumer spending are getting weaker, reports Madlen Read for Associated Press.

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