RPT-Citigroup drops opposition to mortgage bill - senator

(Repeats with no change to headline or text)

WASHINGTON, Jan 8 (Reuters) - Citigroup (C.N) has dropped its opposition to a bill that would allow bankruptcy judges to change mortgage terms, said Sen. Dick Durbin, an Illinois Democrat, on Thursday.

Under an agreement, the bill, which was defeated last year, would only apply to existing mortgages, the mortgage holder would have to contact the bank at least 10 days before filing for bankruptcy and creditor claims would only be invalidated because of major violations of truth in lending rules, the lawmaker's office said in a statement. (Reporting by Diane Bartz; editing by Carol Bishopric)