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Banks Help Struggling Homeowners

Five major New England banks, including Citizens, TD Banknorth and Bank of American have announced a plan to join forces to combat the growing sub-prime mortgage crisis.

The banks will commit at least $100-million dollars combined to a new program to help refinance the loans of several hundred homeowners about to see interest rates on their sub-prime mortgages skyrocket.

The Federal Reserve Bank of Boston will lead the effort.

Some analysts predict the plan could be more successful than other similar programs, including one run by the state, because these new loans will be underwritten by the Federal Housing Administration.

Details on how to qualify are expected to be released Thursday.

This program aired on December 18, 2007. The audio for this program is not available.

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