A Lighter Load

Christian Science Monitor (06/30/08) P. 13; MacDonald, G. Jeffrey
With the Mortgage Bankers Association recently reporting delinquencies and foreclosures at the highest level in nearly 30 years, distressed homeowners increasingly are receiving desperately needed help from mission-oriented banks. The programs offered by such outfits as Sunrise Community Banks in Minnesota, Chicago's ShoreBank and Legacy Bank in Wisconsin cover a much smaller scale than the sweeping federal initiatives that are in place. In Milwaukee, for example, Legacy Bank began refinancing loans back in April for a handful of individuals--primarily African-Americans and Hispanics--identified through an informal referral network that includes schools and churches. Although they currently are helping only a few hundred borrowers stay in their homes, these community development banks are helping to fill a void left by the bigger programs--which exclude certain homeowners, such as those who are already in default.