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FLEET MORTGAGE GROUP REACHES AGREEMENT WITH STATE ATTORNEYS GENERAL

 COLUMBIA, S.C, Feb. 8 /PRNewswire/ -- As previously disclosed in July 1992, Fleet Mortgage Group (NYSE: FLG) began discussions with a group of state attorneys general regarding changes in the manner that customer escrow account balances are calculated. These discussions followed an earlier settlement agreement between the attorneys general and GMAC Mortgage Corporation. In conclusion to these ongoing discussions, Fleet Mortgage Group announced today that its subsidiaries Fleet Mortgage Corp., Milwaukee, Wisc., and Fleet Real Estate Funding Corp, Columbia, S.C., have reached a final agreement with the state attorneys general to settle the dispute regarding escrow accounting procedures.
 "As previously indicated, Fleet Mortgage Group believes the settlement will have no material adverse financial effect on the company or its earnings, either currently or in the future," said Andrew D. Woodward, Jr., chairman, president and chief executive officer.
 Under terms of the agreement, the Fleet Mortgage Group subsidiaries will change certain escrow analysis procedures over the next twelve months. The companies are presently using an individual item analysis method, in which escrow amounts are calculated separately for each tax or insurance obligation to be paid out of the escrow account. The companies will begin using an aggregate (composite) method, in which escrow amounts are based on the total amount of bills to be paid over the course of the year. The companies will perform a trial running balance projection to insure that the projected balance in the escrow account falls to an allowable level under the Real Estate Settlement Procedures Act (RESPA) and the mortgage contracts.
 Due to this change in methods, some customers' escrow accounts will contain excess balances. Any excess customer's monies held in escrow will be refunded to the customers in conjunction with their next account analysis following the implementation of the new procedures.
 "Escrow procedures have been a topic of discussion in the mortgage banking industry for some time," said Woodward. "A recent HUD interpretative ruling indicates that either the individual item or aggregate method is acceptable under RESPA. We believe that our use of the aggregate method will generally prove more beneficial to the consumer over time," Woodward said.
 Fleet Mortgage Group, headquartered in Columbia, S.C., is a leading originator and servicer of mortgage loans. Its subsidiaries originate mortgage loans through 91 branches located in 37 states and acquires new mortgage loans from other lenders through its extensive correspondent network.
 -0- 2/8/93
 /CONTACT: Charles T. conway, Jr., Director, Corporate communications, Fleet Mortgage Group, 803-929-7910/
 (FLG)


CO: Fleet Mortgage Group ST: South Carolina IN: FIN SU:

JM -- CH001 -- 3894 02/08/93 07:49 EST
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Publication:PR Newswire
Date:Feb 8, 1993
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