Extension Will Allow Additional Time for New Government Programs to Become
Effective
WATERBURY, Conn., Feb. 19 /PRNewswire-FirstCall/ -- Webster Bank, N.A., a
subsidiary of Webster Financial Corporation (NYSE: WBS), announced today that
it will extend its voluntary moratorium on home foreclosures for Webster-owned
mortgages until March 31, 2009. The extension allows qualified customers
additional time to benefit from new mortgage relief programs under
consideration by the federal government and other agencies.
Webster became one of the first banks to implement a temporary foreclosure
moratorium last November when it announced that it would voluntarily suspend
foreclosure activity for 90 days for all qualified homeowners who were more
than 30 days delinquent on their Webster residential mortgages as of Nov. 4,
2008. With the foreclosure moratorium extension, Webster will delay
foreclosure activity for qualified mortgage borrowers who are more than 30
days delinquent as of Feb. 13, 2009.
To date, Webster has modified or is in the process of negotiating
modifications to mortgages totaling over $27 million in balances. That
represents about 53 percent of the mortgage balances that were eligible for
Webster's foreclosure moratorium.
"Webster was founded during the Great Depression to help people build and
buy their homes," said Nitin J. Mhatre, Webster's Executive Vice President for
Consumer Finance. "True to our heritage, Webster is today helping at-risk
customers work through difficult economic times so they can stay in their
homes."
The extended foreclosure moratorium and outreach programs 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 is focused 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 is based upon underwriting criteria designed to
ensure qualified homeowners can afford new modification terms.
Webster's mortgage assistance programs were 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.
Webster has approximately $3.1 billion in its mortgage portfolio and it
ranks as one of the top mortgage originating companies in New England.
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 has contacted mortgage loan owners and
investors on behalf of homeowners to see if they might qualify for other
foreclosure prevention or mortgage assistance programs.
Customers with questions about these programs can contact Webster 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, 492 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
CONTACT: Media, Ed Steadham, +1-203-578-2287,
esteadham@websterbank.com,
or Investors, Terry Mangan, +1-203-578-2318,
tmangan@websterbank.com/