06.17.2008

South Weymouth – As an extension of its efforts to help South Shore homeowners avoid foreclosure during the current housing crisis, South Shore Savings Bank has joined with 45 other community bank members of the Massachusetts Bankers Association (MBA) in becoming a participant in the Federal Reserve Bank of Boston’s Mortgage Relief initiative.

“At a time when many homeowners are facing the loss of their homes due to high rate adjustments and increased payments, South Shore Savings Bank is pleased to join in this effort to stave off foreclosures in our communities,” said South Shore Savings Bank President and CEO John C. Boucher.  “We believe that as a community bank, we need to do all we can to assist those who find themselves in these difficult circumstances.”
 
Introduced in December, the initiative has now grown from an initial five regional banks to more than 50 banks of every size, with branches throughout Massachusetts and much of New England. 
The original plan was to reach out to borrowers with high-rate “subprime” loans who might be eligible for a more secure, predictable, affordable mortgage from a bank.  However, falling home prices in many parts of New England have eroded home equity.  As a result, some borrowers’ homes are now worth less than their loan, and refinancing into a new mortgage can be difficult.

“There is no single, easy answer,” says Daniel Forte, president and CEO of the MBA.  “Banks did not cause this problem but the Mortgage Relief banks, regardless of their size, want to be part of the solution.  They have a stake in the success of the local and regional economy.” 

When they can’t assist with a loan, the Mortgage Relief banks urge borrowers in difficult situations to contact the servicer of their mortgage as soon as possible (in particular, the servicer’s loss mitigation department), or a mortgage-counseling service such as the Homeownership Preservation Foundation or regional foreclosure-prevention centers.

The Federal Reserve Bank of Boston applauds the banks’ continued efforts. “These are very challenging times for some borrowers,” says Eric Rosengren, president and CEO of the Federal Reserve Bank of Boston, “and I am genuinely pleased to see banks of all sizes and types stepping up and trying to make a difference.  It is not only the right thing to do for borrowers in distress, but also is in the long-term interest of the local and regional economy.”

To learn more about the Mortgage Relief initiative, borrowers can contact South Shore Savings Bank at 781-682-3220, or visit their web site at www.sssb.com.

Originally chartered in 1833, South Shore Savings Bank is a full-service community bank with approximately $900 million in assets and 15 branches.  All deposits are insured in full.  The FDIC insures all deposits up to $100,000 per depositor and up to $250,000 per depositor for traditional and Roth IRAs; all deposits above this amount are insured by the Depositors Insurance Fund (DIF).