Printer Friendly

SHAWMUT BANK ANNOUNCES AGREEMENT WITH MASSACHUSETTS ATTORNEY GENERAL'S OFFICE TO RESOLVE SECOND MORTGAGE AND HOME IMPROVEMENT ISSUE

 SHAWMUT BANK ANNOUNCES AGREEMENT WITH MASSACHUSETTS ATTORNEY GENERAL'S OFFICE TO RESOLVE SECOND MORTGAGE AND HOME IMPROVEMENT ISSUE
 BOSTON, Feb. 28 /PRNewswire/ -- Shawmut Bank, a subsidiary of Shawmut National Corporation, today announced that it has reached an agreement with the Attorney General of the Commonwealth of Massachusetts to assist approximately 50 consumers whose high-interest second mortgages were written by Resource Services, Inc. and assigned as collateral to Shawmut. The agreement calls for Shawmut to refinance at lower rates loans made by Resource, or to provide cash grants to affected individuals.
 As part of the agreement, and in addition to the commitment to assist Resource customers, Shawmut will establish a $7 million pool of below-market rate funds to subsidize two new lending initiatives. The Consumer Loan Subsidy Program, funded by $5 million, will be used for low-interest, no-fee loans to low-income borrowers, which can be used for first mortgages, including mortgage refinancings, debt consolidations, or first-time homebuyers. The remaining $2 million will be dedicated to a Home Improvement Loan Subsidy Program, which will offer home-improvement loans at 3 percentage points below market rates.
 "We're pleased to have reached agreement with the Massachusetts Attorney General's office and with community leaders on this issue," said Shawmut Bank President and Chief Executive Officer John P. Hamill. "The extent of the final terms of this agreement demonstrate Shawmut's commitment to the communities it serves and to resolving this matter with affected individuals."
 Coinciding with this resolution, Shawmut also announced a "Claims Resolution Program," which will work in conjunction with the Massachusetts Community and Banking Council (MCBC). This Claims Resolution Program will assist eligible homeowners with home improvement loans made by Shawmut, and second mortgage loans from other lenders who were financed by Shawmut. Shawmut will write to approximately 269 individuals who may be eligible under this new program.
 Last summer, Shawmut initiated contact with community leaders for their input in developing this claims resolution process. Representatives of Shawmut, the Mayor's office, and community and civil rights advocates, including the Greater Roxbury Neighborhood Authority (GRNA), the Boston Chapter of National Association for the Advancement of Colored People (NAACP), the Lawyer's Committee for Civil Rights Under Law, the Union Neighborhood Assistance Corp (UNAC), and the Hotel Workers Union (Local 26) all worked together to develop the program. Final discussions between Shawmut and the community representatives were facilitated by ENDISPUTE, Inc., a nationally recognized provider of alternative dispute resolution services.
 Individuals who believe they may be eligible under this program may contact Shawmut directly or may be referred to Shawmut by the Massachusetts Community and Banking Council (MCBC), which will also be involved in the resolution process.
 The above mentioned programs will be operational in April. In the interim, consumers with general questions may call (617) 499-3033.
 Shawmut Bank is a principal subsidiary of Shawmut National Corporation (NYSE: SNC), a superregional bank holding company with headquarters in Boston, Mass., and Hartford, Conn.
 -0- 2/28/92
 /CONTACT: Marjorie M. Seus, 617-292-3239, or Brent S. DiGiorgio, 203-240-7632, of Shawmut/
 (SNC) CO: Shawmut Bank ST: Massachusetts IN: FIN SU:


EG-DH -- NE011 -- 3840 02/28/92 15:49 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 28, 1992
Words:517
Previous Article:RALLY TO PROTEST 'BUDGET BETRAYAL' AND HEALTH CARE COSTS MARCH 3
Next Article:SAE INTERNATIONAL CONGRESS DRAWS OVER 37,000
Topics:


Related Articles
BAYBANKS ANNOUNCES EXPANSION OF COMMUNITY INVESTMENT PROGRAM
BAYBANKS ANNOUNCES EXPANSION OF COMMUNITY INVESTMENT PROGRAM
LEO R. BREITMAN NAMED CHAIRMAN AND CEO OF FLEET BANK OF
FORMER MASSACHUSETTS COMPUTER COMPANY OWNER INDICTED FOR DEFRAUDING SHAWMUT BANK
SHAWMUT TO OPEN FULL-SERVICE BRANCH AND MORTGAGE OFFICES IN ROXBURY
SHAWMUT NATIONAL AND NEW DARTMOUTH AGREE TO EXTEND MERGER PACT
SHAWMUT BANK CREATES SPECIAL LOAN POOL TO AID SMALL BUSINESSES IN LOW- AND MODERATE-INCOME AREAS
SHAWMUT BANK EXPANDS COMMUNITY INITIATIVES TO SMALL BUSINESS AND CONSUMER LENDING
FLEET AND SHAWMUT ANNOUNCE DIVESTITURE PROPOSAL FOLLOWING DISCUSSION WITH REGULATORS
WOBURN MAN PLEADS GUILTY AND IS SENTENCED FOR CONSPIRACY TO MISLEAD BANK, U.S. ATTORNEY SAYS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters