February 10, 1994

New Mortgage Program For Low-Income, Minority Groups

By DIANE DUSTON

Executives of Fleet Financial Group Inc. announced an $ 8 billion mortgage loan program Thursday for low-income and minority borrowers who have been shut out in the past.

It also may end a stormy relationship the Rhode Island-based mortgage company has had with Union Neighborhood Assistance Corp., an outspoken community organization in Boston that accused Fleet of victimizing black borrowers with high interest rates.

"This program promises to deliver financial services to those members of our communities all too often left out," said Sen. Claiborne Pell, D-R.I., as he introduced Fleet executives at a news conference in the Capitol.

UNAC, the organization that had been doing battle with Fleet, also had nothing but praise Thursday for the company's sweeping INCITY program.

The program includes $ 140 million in mortgages that will be administered in partnership with UNAC to low- and moderate-income borrowers in Massachusetts, Connecticut, New York, New Jersey, Maryland, Virginia and Washington D.C.

"This is community banking as it's best," Bruce Marks, UNAC executive director said.

Fleet will expand low-and moderate-income borrowing opportunities in the 37 states in which it does business.

In the seven-state program with UNAC, it will extend loans with no down payment, closing costs or private mortgage insurance.

It also will create a fund to help homeowners with financial emergencies; liberalize credit requirements and refinance at 110 percent of value.

About $ 800 million of Fleet's $ 8 billion program will be devoted entirely to new and original community commitments, said company officials.

The remaining $ 7.2 billion includes government-sponsored loan programs and other Fleet initiatives, all aimed at low- and moderate-income individuals and small businesses.

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