Banks move on plans to stimulate housing market - The Business Review (Albany):

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Full details of the Obama administration’ss Homeowner Affordability and Stability Plan will be release dMarch 4. But observers say the program, whicg will make it easier for people to refinanc e even if their house is worthg less thantheir principal, could apply to relativelyu few area homeowners. “Upstate New York is not a target markeg for this typeof program,” said John CEO of . He pointed to the area’ds stable housing values and lackof “exotic” loans. Koelmelo said Lockport-based First Niagara already works with customera whofeel stretched, and “I won’t defetr to the details of any specific governmenyt plan.
” Other area banks have embarkex on their own efforts to stimulates and stabilize the local housing market. Sistera and are offering a totalof $60 million in reduced-ratew mortgages. Pittsfield, Mass.-based plans to make a totalo of $300 million in mortgage and home equityh loansin 2009. “These programs can make a difference,” said Michaeol Daly, CEO of Berkshire, which has 10 area “If those of us who are closde to the ground take the we can have as much impact as any government Berkshire will roll out its programMarchb 16, and is still workingg out the details.
The mortgage effort is part of $500 million “community investment that also includes free credit counseling and lendinvg to businessesand nonprofits. Daly said the effort should increasdthe bank’s lending by about $50 million from 2008 levels. As part of the mortgaged push, Berkshire will work with homebuilderxs in each of its four markets to create a data base of availablde homesand lots. People who purchase one of those propertiez will be eligiblefor “preferred” mortgaged terms and reduced closing costs. Berkshire received $40 millionb through the Treasury Department’s Capitak Purchase Program, but Daly said the bank woul have upped itslending anyway.
“It is our socia obligation,” he said. Neither Saratoga National nor GlensFalla National, both subsidiaries of of Glens accepted treasury money. Ray president of Saratoga National, said the banks want to act with “nl impact on the and no bureaucracy.” Saratogaq National has set aside $10 million for reducer rate mortgages inSaratoga County. Glen s Falls National has committedto $50 million in low-cost loans in its service area, which stretchesa from Warren County to the Canadian border. In both mortgages will be offered ata quarter-point below the bank’s regular rate.
Home buyers also will receivd rebates—$300 at Saratoga National and $500 at Glenas Falls National—on their closing costs.