Housing chief Brooks honors SoftSecond's 10,000th homebuyer

BOSTON, May 7, 2008 --- The Patrick Administration has honored a Dorchester family, Bank of America and the City of Boston for helping the state’s most affordable mortgage program achieve its 10,000th loan and for setting a record for loans in a single year while maintaining low foreclosure rates.

On May 7, Tina Brooks, the Patrick Administration’s housing chief, presented Hyacinth and Andrew Doman of Dorchester with a framed photograph of their home, signed by Governor Patrick, in honor of the family being the SoftSecond Loan Program’s 10,000th borrower.

“On behalf of Governor Patrick, we congratulate you on realizing the American dream of homeownership,” said Brooks during a morning ceremony at the Doman’s Dorchester home. “Your determination to save and find security for your family is what homeownership is all about and what the Patrick Administration supports through programs like SoftSecond.”

Brooks also presented “Second to None” Awards to the City of Boston’s Home Center and to Bank of America for helping the Doman family buy their first home and for their long support of the SoftSecond program.  The awards are given out each year by the Massachusetts Housing Partnership to banks and homebuyer counseling agencies who distinguish themselves in promoting affordable homeownership. MHP is the state organization that helped create and now administers SoftSecond.

“The Patrick Administration understands that hard-working families need safe, low-cost mortgages, especially in the wake of problems caused in the housing market by sub-prime mortgages, “ said Brooks. “Thanks to strong, supportive and longtime partners like Bank of America and the City of Boston, the SoftSecond program continues to be a wonderful option for first-time homebuyers.”

SoftSecond combines a first and second mortgage from a bank with a small state subsidy, thereby lowering a borrower’s monthly mortgage payment by about 20 percent. Unlike sub-prime mortgage products, SoftSecond loans are fixed-rate. Bank of America was recognized for being the top SoftSecond lender in Boston in 2007 with 82 loans. The Doman family received its loan from Bank of America. Historically, BofA has made 1726 SoftSecond loans in Boston and 4602 SoftSecond loans statewide.

“Bank of America congratulates the Doman family on realizing the dream of homeownership,” said William Fenton, Bank of America Massachusetts Senior Vice President. “We have seen through them and thousands like them the long-term stability SoftSecond offers working families and we’re very gratified to receive recognition for our long-term support of SoftSecond.”  

Borrowers must also take pre-and post-purchase homebuyer classes. As a result, SoftSecond delinquent payment and foreclosure rates are lower than other loan programs, with a below average delinquency rate of 1.9 percent and a foreclosure rate of 0.36 percent. The City of Boston’s Home Center, which offers homebuyer counseling courses, received a “Second to None” Award for helping 188 families purchase their first home with a SoftSecond loan in 2007. Hyacinth Doman took homeownership classes at the Boston Home Center.

"In these tough economic times, it is more important than ever for potential homebuyers to take advantage of the great programs and resources offered by the City and the Commonwealth," said Mayor Thomas M. Menino. "I want to congratulate the Doman family, and I'm proud that the City's Home Center could work with them to ensure an affordable SoftSecond loan. They're a great example of Boston's American Dream."

The SoftSecond program was created in 1990 to give minority and lower-income families better access to mortgage financing.  In 2007, SoftSecond set a program record for single loans in a year (1147), surpassing the previous high of 913 in 2004. The average income of a SoftSecond borrower is $49,639.

SoftSecond was designed for families like the Domans.  Hyacinth Doman drives a train for the MBTA. Her husband Andrew drives a cab. Their children – ages 8 through 17 – attend Boston area schools.  Bianca goes to an elementary school in Swampscott, Christopher is a freshman at Boston Arts Academy, Toya and Sasia go to Brookline High School.
 
Since moving to Boston from Jamaica in 1989, the Domans have always rented. Hyacinth Doman said the constant moving worried her so she began to plan. She saved every penny. She took homebuyer education classes at the city’s Home Center.  She asked her friends where to get a loan. She called some “1-800” numbers and said she knew what she was hearing was too good to be true. 

She decided that a SoftSecond Loan from Bank of America was best.  In August 2007, she bought a home through the City of Boston’s 1st Home Program, which provides opportunities for first-time homebuyers to purchase new, rehabilitated or re-sold homes.   “I got a mortgage that I can afford and I can pay all my other bills too,” she said. “SoftSecond came through for me. I’d recommend it to anyone.”

Andrew Doman added that in this foreclosure crisis “my heart goes out to all those families who could not pay their bills and lost their home. This home is a dream come true for us and we’re going to work hard to keep it. It’s a long hard road to buying a home and we could not have done it without SoftSecond.”

In addition to support from 43 banks and 66 homeownership counseling agencies, SoftSecond is also supported by the state legislature.  State funds are used to lower payments on the second mortgage and also fund a loan loss reserve, which means homebuyers do not have to purchase private mortgage insurance. Every $7,000 the state puts in leverages approximately $197,000 in private mortgage financing. This state assistance is typically repaid when the homebuyer refinances or sells the property.

“SoftSecond has provided opportunities to over 1600 households, like the Domans, in my district of South Boston, Dorchester, Mattapan and Hyde Park," said Senator Jack Hart.  “The recent foreclosure crisis further demonstrates the need for families to access affordable mortgage financing. I commend the work of the Massachusetts Housing Partnership and I look forward to working with them and the SoftSecond Loan Program in the future.”

In recognition of his support for SoftSecond, MHP Executive Director Clark Ziegler presented Sen. Hart with a special “Homes Rule” poster, signifying Sen. Hart’s longtime support of affordable housing and the SoftSecond program.

“Legislative support for this program has leveraged over $1.7 billion in private bank mortgage financing for families buying their first home,” said Ziegler. “SoftSecond could not work without the legislature and we appreciate Senator Hart’s support.”