- Five Banks Launch Mortgage Relief Initiative for New England

Tuesday, February 19, 2008

Every day we hear more and more about families facing rising mortgage costs and the very real possibility of losing their homes. To help prevent that from happening, five banks in New England have partnered together - with the encouragement of the Federal Reserve Bank of Boston - to provide assistance to homeowners before the threat of foreclosure becomes a reality.

Five banks are working together to reach out to some of the New England Homeowners who have been affected, or may soon be affected, by the recent mortgage crisis. The banks’ initiative, called the Mortgage Relief Fund, should make it easier for some homeowners who are paying high rates, and those who face a reset of an adjustable-rate loan, to refinance into a more affordable mortgage, avoiding delinquency and ultimately foreclosure.

The banks, Citizens Bank, Sovereign Bank, TD Banknorth, Webster Bank and Bank of America are stepping forward to play a positive role in the challenging situation facing many New England homeowners. The banks have together committed an initial $125 million for mortgage loans.

Introducing the Mortgage Relief Fund
Citizens Bank, Sovereign Bank, TD Banknorth, Webster Bank and Bank of America have committed $125 million in funds to create the Mortgage Relief Fund. Our goal is to help eligible homeowners in New England refinance into more conventional fixed-rate loans that will better meet their needs.

Who is this Fund for?
This Fund is aimed at helping homeowners who are in good standing with their current mortgage loan(s), but who may be experiencing difficulty making payments now and who expect to have greater difficulty making payments when their rates reset.

Part of the Solution, not the Problem
As corporate citizens that care about the communities where our customers live and work, Citizens Bank, Sovereign Bank, TD Banknorth, Webster Bank and Bank of America think it’s important to offer this Mortgage Relief Fund to homeowners during these difficult times.

This particular program is not designed for borrowers who are delinquent on their mortgage payments or facing imminent foreclosure. Borrowers in that difficult situation should contact the servicer of their mortgage as soon as possible, or a mortgage-counseling service such as Homeownership Preservation Foundation at 888.995.HOPE. To learn more, contact one of the banks below.