How far are we from the bottom? Well, there are plenty of signs that we're not there yet; Fannie Mae's big loss is one indication. So it certainly can't hurt that more banks--IndyMac seems to have been the precursor--are willing to ease terms of mortgages for their customers. Citigroup has become the latest to join that group. It says about 130,000 mortgage customers will likely qualify for the new terms, covering $20 billion of loans. This will keep loans performing, but it will have limited effects. They only will be extended to loans that Citigroup owns, not the loans that were packaged into mortgage-backed securities, which were used to create all those CDOs, reports the New York Times.

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