Waterbury, Connecticut-based Webster Bank, which is a subsidiary of Webster Financial Corp., announced this week that it’s helping the New England state move at-risk borrowers into more stable, fixed-rate mortgages.

Webster Bank was selected for the initiative by the Connecticut Housing Finance Authority (CHFA), which is overseeing the state’s new $50-million home rescue initiative.
As a partner in the initiative, Webster Bank will help low-to-moderate income borrowers refinance out of subprime loans. The rescue plan is aimed at borrowers with certain payment histories, incomes and property types, Webster Bank said in its press statement.
“Most adjustable-rate subprime mortgages carried low initial interest rates so many of the borrowers may not have fully understood that their monthly payments could rise sharply after the first two or three years,” said Michael Sheahan, Webster’s Director of Mortgage Banking. “Webster is proud to have been selected to participate in this important new program and demonstrate our continued commitment to meeting the needs of the communities we serve.”
According to Webster Bank, Connecticut officials estimate that out of 71,000 active subprime loans in the state, 21,000 are adjustable-rate mortgages that are scheduled for reset within the next two years.
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