Mt. Washington Bank Works with Mayor Menino On New Foreclosure Prevention Measures

Contact: Beth LaBrack
Mt. Washington Bank
857-524-1156


Mayor Thomas M. Menino was recently joined by senior officials from several Boston banks to announce a major expansion of the city’s foreclosure prevention initiative that includes a refinancing consortium, the establishment of a Boston Homeownership Preservation Fund to support foreclosure prevention counseling and outreach, and a nine-fold expansion of foreclosure counseling services offered through the city’s Boston Home Center.

Mt. Washington Bank, along with five other banks, was recognized by Mayor Menino as a “First Choice Lender” for its assistance in the city’s foreclosure prevention efforts, support of outreach and counseling efforts, and their commitment to adhere to lending practices that minimize the risk of foreclosures.

“My message to all Boston homeowners is this: If you are in trouble or you think you are headed for trouble paying you mortgage, there is help available. Call the Boston Home Center at 635-HOME,” Mayor Menino said. “Don’t wait until it’s too late.

The Department of Neighborhood Development (DND) and its Boston Home Center have been meeting with officials from several leading Boston banks for the past several months to establish a consortium of refinancing products of up to $100 million aimed at helping to refinance homeowners into more stable and secure mortgages. In addition, the banks will provide monetary support for the city’s foreclosure prevention counseling efforts via a newly established Boston Homeownership Preservation Fund.

The charter City of Boston First Choice Lenders are Mt. Washington Bank, Bank of America, Boston Private Bank & Trust, Citizens Bank, Eastern Bank, and Sovereign Bank. In addition to their work on this issue, these banks have exemplary lending records that include a substantially lower share of foreclosures than lending market share. In addition, the banks have committed to adhere to a common set of lending practices aimed at placing homeowners in the most sustainable mortgages.

“When it comes to foreclosures, we all know that these banks are not the problem – it’s some mortgage companies,” said Mayor Menino. “Even so, these banks have been willing to step up to the plate and be part of the solution. I challenge other lenders who operate in the City of Boston to make a similar pledge.”

“It is a natural partnership for Mt. Washington Bank to work with the Mayor on this very important banking initiative. As a bank committed to the communities and neighborhoods it serves, Mt. Washington Bank is proud to be recognized by the City of Boston as part of the solution, working to preserve home ownership not prohibiting it,” said Edward J. Merritt, President and CEO of Mt. Washington Bank.

As part of the foreclosure prevention effort, the Boston Home Center is increasing its counseling services by making available up to $350,000 to expand the capacity of existing partner agencies ESAC (Ensuring Stability through Action in our Community) and HOME (Homeowner Options For Massachusetts Elders) and establishing new foreclosure counseling capacity at Nuestra Comunidad Development Corporation, Urban Edge, and Mattapan Family Service Center.

In addition, this foreclosure prevention network will be supported by the newly created Boston Homeownership Preservation Fund, which is expected to be seeded with more than $500,000 in commitments from the six charter First Choice Lenders, Fannie Mae, Ameriquest Mortgage, Fremont Mortgage, Boston Redevelopment Authority, and DND. These funds will be used to support education, awareness, and outreach efforts to Boston homeowners.

In May, Mayor Menino announced his commitment to fight the rising tide of foreclosures in Boston. Statistics show Boston’s foreclosure rate is on a sharp rate of increase. There were 24 foreclosures in 2004; 60 in 2005; and as of this week, there were 190 foreclosures in 2006, on course for approximately 240 this year.

Among the efforts underway is outreach to 6,000 Boston property owners who recently borrowed money from traditionally high-interest-rate lenders. The Boston Home Center will contact these borrowers, offer home mortgage evaluation, and direct them to appropriate financial counseling or refinancing services.

Founded in 1893, Mt. Washington Bank has stayed committed to the promise outlined in its mission statement by being "full-service independent bank, offering financial services to meet the needs of its retail and small business community. Mt. Washington recently announced the opening of its new Gallivan Boulevard branch in Dorchester, representing the Bank's fourth branch location in addition to a stand alone loan center.

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