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| Why did you decide to launch this initiative? |
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| We are concerned about the rising rates of delinquency and foreclosure in the region. They bring a painful human toll for fellow New Englanders, and have a negative effect on neighborhoods and potentially the region's economy. While many of the higher-rate loans that are now causing difficulty were not originated by banks, banks can work with borrowers and hopefully help many of them get into more-affordable loans. Research by the Federal Reserve Bank suggests that as many as a quarter of the borrowers holding so-called subprime loans actually have solid credit histories and some home equity, so we want to reach out to them—as good corporate citizens and good businesspeople.
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| How many homeowners do you think you'll be able to serve? |
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| The banks are each committing $25 million in loans, for an initial total of $125 million. The number of homeowners assisted will depend on the size of the mortgages—for example, it would represent 500 mortgages of $250,000. If the demand proves to be greater than the initial $125 million commitment, we will try to go further—especially if the mortgages can be securitized.
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| Is the program only for homeowners whose current loan is adjustable and will reset? |
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| The program is designed to provide relief to homeowners who are in good standing with their current mortgage loan, but are paying above-market rates or are facing an increase in their monthly mortgage payment due to their adjustable-rate mortgage rate re-setting.
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| What are the eligibility requirements? |
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| The initiative aims to assist a subset of borrowers—those whose home is worth more than the balance of their mortgage, who have generally made mortgage payments on time, who reside in the property, and who can document their income.
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| What is the application process? |
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| If you meet the criteria listed above, call 800-288-6225 to speak with a Sovereign Mortgage Servicing Representative. A bank mortgage loan officer will work with you to determine eligibility. Once eligibility has been determined, the mortgage loan officer will work with you to determine the most suitable loan product.
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| What products will be available through this program? |
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| Through the program, borrowers will have access to a range of mortgage products, including FHA loans, as well as products that incorporate state programs.
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Equal Housing Lender - Member FDIC
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