Citizens Bank, Sovereign Bank, TD Banknorth, Webster Bank and Bank of America have joined forces to create the Mortgage Relief Fund, which is intended to aid New England homeowners who have been affected – or may soon be affected – by the current mortgage crisis.
According to the banks, the Mortgage Relief Fund will make it easier for some homeowners who are paying high rates or who face a reset of an adjustable-rate loan to refinance into a more affordable mortgage, avoid delinquency and avoid foreclosure. The program is designed for borrowers who are paying high rates despite good payment histories and are residing in homes that are worth more than their outstanding mortgage loan balances.
The five banks have together committed an initial $125 million for mortgage loans – with the support of the Federal Reserve Bank of Boston. Borrowers will have access to a range of mortgage products that may include FHA and FHA Secure offerings as well as state programs and other programs offered by the five participating banks.