Will Work to Structure New Affordable Payment Plans, Reach Out to At-Risk
Customers
WATERBURY, Conn., Nov. 13 /PRNewswire-FirstCall/ -- Webster Bank, N.A., a
subsidiary of Webster Financial Corporation (NYSE: WBS), announced today a
90-day moratorium on home foreclosures for Webster owned mortgages and the
expansion of mortgage assistance programs aimed at keeping families in their
homes.
Under the program, Webster will temporarily suspend foreclosure activity
for at least 90 days for all qualified homeowners who were more than 30 days
delinquent on their Webster residential mortgages as of Nov. 4 and work with
those customers to structure more affordable payment plans so they can stay in
their homes. The program applies to all eligible mortgages owned by Webster.
In addition to the temporary foreclosure moratorium, Webster will expand
its mortgage assistance program by identifying and contacting at-risk
customers to see if they need help to remain current on their mortgages.
"Our goal, as always, is to identify and meet the financial needs of our
customers. During this challenging economic time, we feel a heightened
responsibility to assist those who are under financial pressure and are
threatened with the possibility of losing their homes," said James C. Smith,
Webster's chairman and CEO. "Just as my father did when he founded Webster
Bank during the Great Depression, we will do everything in our power to keep
people in their homes."
The foreclosure and outreach programs will apply to eligible borrowers
where Webster owns the mortgage. Eligible borrowers must occupy the home as
their principal residence, be working in good faith to stay current on their
mortgage and provide evidence of sufficient income to support affordable
mortgage payments.
Mortgage assistance will focus on creating affordable, sustainable payment
plans, and may include such options as: temporarily reducing the monthly
payment, extending fixed payment periods on adjustable loans, extending
mortgages beyond the current length, refinancing, or adjusting interest rates.
The use of these options will be based upon underwriting criteria designed to
ensure qualified homeowners can afford new modification terms.
Webster's foreclosure moratorium and mortgage assistance programs are
designed with input from community and housing organizations. Webster is a
regular sponsor of counseling workshops and works closely with community
groups, state housing agencies, and other government agencies in providing
home lending solutions to responsible borrowers. "Consistent with our goal to
be New England's bank, we continue to work closely with community groups and
local governments in our markets to identify those in need of assistance, and
where possible, we will assist them," Smith said.
In addition to its own mortgages, Webster also services mortgages owned by
other financial institutions and investors. Webster cannot unilaterally
suspend foreclosure on mortgages it does not own. As part of its expanded
mortgage assistance program, Webster will contact mortgage loan owners and
investors on behalf of homeowners to see if they might qualify for other
foreclosure prevention or mortgage assistance programs. "Webster will be there
to help customers. If we cannot directly assist homeowners whose mortgages we
service but don't own, we'll assist to see if there are other options for
staying in their homes," Smith said.
Customers with questions about these programs can contact Webster's loan
customer service center at 1-800-270-5400.
Webster Financial Corporation is the holding company for Webster Bank,
National Association. With $17.5 billion in assets, Webster provides business
and consumer banking, mortgage, financial planning, trust and investment
services through 181 banking offices, 484 ATMs, telephone banking and the
Internet. Webster Bank owns the asset-based lending firm Webster Business
Credit Corporation, the insurance premium finance company Budget Installment
Corp., Center Capital Corporation, an equipment finance company headquartered
in Farmington, Conn., and provides health savings account trustee and
administrative services through HSA Bank, a division of Webster Bank. Member
FDIC and equal housing lender. For more information about Webster, including
past press releases and the latest annual report, visit the Webster website at
www.WebsterOnline.com.
SOURCE Webster Financial Corporation
-0- 11/13/2008
/CONTACT: Media, Ed Steadham, +1-203-578-2287, esteadham@websterbank.com,
or Investors, Terry Mangan, +1-203-578-2318, tmangan@websterbank.com, both of
Webster Financial Corporation/
/Photo: http://www.newscom.com/cgi-bin/prnh/20050421/NYTH039LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com/
/Web Site: http://www.websteronline.com /
(WBS)
CO: Webster Financial Corporation; Webster Bank, N.A.
ST: Connecticut
IN: FIN RLT
SU:
PR
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5947 11/13/2008 09:30 EST http://www.prnewswire.com