A new initiative by Gov. Deval Patrick and several local banks and housing agencies aims to issue 10,000 new mortgages to first-time homebuyers over the next five years.
The "Home Ownership Compact" includes a commitment by the lenders to originate a specific number of mortgage loans to buyers with household incomes below the area median income through the MassHousing and the Massachusetts Housing Partnership programs.
"By giving more young people and families the opportunity to own a home, we retain our talent pool and create sustainable long term economic growth," Patrick said in a statement.
Banks which have already agreed to participate in the program include Citizens Bank, Sovereign Bank, Eastern Bank, Rockland Bank and Trust, Enterprise Bank and Trust Co. and Blue Hills Bank. The Department of Housing and Community Development, the Office of Consumer Affairs and Business Regulation and the Division of Banks are still seeking additional lenders to join the compact.
"As a responsible lender, we firmly believe in providing affordable mortgage solutions to first-time homebuyers," Jerry Sargent, president of Citizens Bank, said in a statement. "Homeownership is vital to the economic success of our local communities and we are honored to support Gov. Patrick’s home ownership compact."
The Massachusetts Division of Banks also announced Monday that it has awarded $1.3 million in grants to 11 regional foreclosure prevention centers and 10 individual/first-time homeownership centers across the commonwealth.
"The centers receiving these grants do critical work, providing valuable education to potential home buyers and aiding those who are underwater or may be at risk of foreclosure," Barbara Anthony, undersecretary of the Office of Consumer Affairs and Business Regulation, said in a statement. "Keeping hard working families in their homes rebuilds communities, strengthens local housing markets and aids in the state’s overall economic growth."
Patrick made the announcement at part of "Commonwealth Housing Week," which will run from June 10-16 and include a number of events to highlight the recovery of the Massachusetts housing market and the state’s foreclosure prevention efforts. Events will include a "Twitter Town Hall" with Anthony and Undersecretary Aaron Gornstein of the Department of Housing and Community Development, using the hashtag #MAhousingweek.
