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FLEET/NORSTAR, MASS. ATTORNEY GENERAL REACH AGREEMENT ON RESTITUTION/ LOAN PROGRAM, $12 MILLION MORTAGE FUND FOR LOW-INCOME RESIDENTS

FLEET/NORSTAR, MASS. ATTORNEY GENERAL REACH AGREEMENT ON RESTITUTION/
 LOAN PROGRAM, $12 MILLION MORTAGE FUND FOR LOW-INCOME RESIDENTS
 BOSTON, April 9 /PRNewswire/ -- Fleet/Norstar Financial Group (NYSE: FNG) and the Office of the Massachusetts Attorney General have reached an agreement following that office's investigation of past consumer lending activities by Resource Northeast, Inc., and Fleet Bank of Rhode Island, one of its lenders. A program providing restitution and loans to approximately 40 Massachusetts borrowers has been established, as well as a $12 million mortgage fund for low- income Massachusetts residents, under the agreement.
 H. Jay Sarles, executive vice president of Fleet/Norstar and head of its banks in Massachusetts, Rhode Island and Connecticut, said, "Our discussions with the Attorney General have been comprehensive and constructive in reaching this agreement. With a mechanism in place to respond to borrowers who have suffered harm, and a mortgage fund designed for low-income residents, we can offer both relief and opportunity for eligible borrowers across the Commonwealth."
 Under the terms of the agreement, Fleet pledged that it:
 --Will offer any borrower of Resource Northeast -- the orginator of the loans in question -- whose loan was funded by Fleet Bank and who was harmed as a result of his or her relationship with Resource, a choice between loan assistance and a cash payment of $6,000.
 --Will offer those eligible borrowers who opt for loan assistance first mortgage loans at favorable interest rates with no downpayment, points or other fees.
 --Will, in addition to providing assistance to those borrowers who were harmed by Resource loans which were funded by Fleet, provide $12 million to be used to make low-interest, no-fee mortgage loans available to low-income residents of Massachusetts who would not qualify for loans under traditional banking standards.
 --Will obtain legal opinions regarding whether secord mortgage companies they fund in the future are lending on terms that violate consumer protection law.
 The agreement with the Massachusetts Attorney General follows last year's agreement with the city of Boston, in which Fleet/Norstar established a mortgage assistance program to help Fleet borrowers who had been harmed by second mortgage lending practices.
 Fleet Bank of Rhode Island is a subsidiary of Fleet/Norstar Financial Group, a diversified financial services company listed on the New York Stock Exchange with approximately 1,300 offices nationwide. Fleet/Norstar's lines of business include commercial and consumer banking, mortgage banking, consumer finance, asset-based lending, investment management, and student loan processing. Fleet Bank of Rhode Island and Fleet/Norstar are headquartered in Providence, R.I.
 -0- 4/9/92
 /CONTACT: Robert W. Lougee, Jr., vice president-corporate communications, 401-278-5879, or Bruce P. Crooks, 401-278-6241, or Thomas P. Lavelle, 617-573-7733, of Fleet/Norstar Financial Group/
 (FNG) CO: Fleet/Norstar Financial Group ST: Rhode Island, Massachusetts IN: FIN SU:


EG -- NE014 -- 6860 04/09/92 14:25 EDT
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Publication:PR Newswire
Date:Apr 9, 1992
Words:470
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