Five banks are working alongside the Federal Reserve Bank of Boston to help subprime borrowers in New England—who have solid mortgage payment histories—but still remain at-risk of losing their homes because of the rising rates on adjustable-rate mortgages.
The banks spearheading this charge include Citizens Bank, Sovereign Bank, TD Banknorth, Webster Bank and Bank of America. Through their partnership the banks hope to help qualified homeowners refinance into loans that are more financially appropriate. With $125 million committed to this initiative, the participating banks are receiving support from the Federal Reserve Bank of Boston.

“I really commend these banks for stepping forward and working so hard to develop this initiative—which we all hope will assist a key subset of borrowers,” Eric Rosengren, president and chief executive officer of the Boston Federal Reserve Bank said.
To pay for homeowner outreach and lending options the five banks have established the Mortgage Relief Fund to assist borrowers.
“It’s not everyday that you see competitors come together like we are today,” said Patrick J. Sullivan, chief executive officer of New England North-Sovereign Bank. “We are proud to partner with other financial institutions, and applaud the Federal Reserve Bank of Boston for encouraging the formation of the Mortgage Relief Fund and working with us throughout the process.”
Click here to read more about this initiative.