Media Advisory
February 15, 2006
Contact: Becky Fleischauer, 202-220-2360
TD Banknorth Media Contact:
Dennis Lagueux, (603) 647-2111 x226
New England Consumers Get a Boost in the Fight Against Predatory Lending:
TD Banknorth Grant to Fund Education Program
Washington, D.C.–New England consumers will soon receive much-needed help combating predatory lending thanks to a joint venture between the TD Banknorth Charitable Foundation and NeighborWorks® America. TD Banknorth awarded nearly $200,000 to NeighborWorks America to create public awareness and educational training modules related to predatory lending practices and other avoidable drains on financial resources that have increasingly targeted the elderly and low-income families. The training and awareness campaigns will be piloted in four New England states: Connecticut, Massachusetts, New Hampshire and Vermont.
The NeighborWorks organizations delivering the financial education courses include:
- Oak Hill Community Development Corporation and NeighborWorks HomeOwnership Center of Worcester, MA
- NeighborWorks of Western Vermont in West Rutland, VT
- Neighborhood Housing Services of New Haven in New Haven, CT
- Manchester Neighborhood Housing Services in Manchester, NH
NeighborWorks America is the nation’s largest trainer and certifier of homeownership and financial education counselors. Growing predatory lending scams and increasingly complex and risky mortgages make strengthening financial and homebuyer literacy an imperative. Demand for financial literacy and predatory lending courses at NeighborWorks Training Institutes is at an all-time high. Prime targets for unscrupulous business practices include the elderly, low-income individuals and families, and new immigrants who are not familiar with the U.S. financial system. The TD Banknorth-NeighborWorks America relationship will create training and education materials for these courses in multiple languages.
“Without access to quality information and guidance, many consumers miss opportunities to get the most out of their investment, or worse, fall into mortgage or loan traps that eventually lead to foreclosure and financial ruin,” said NeighborWorks America CEO Ken Wade. “Thanks to community-minded lenders like TD Banknorth and our NeighborWorks network, consumers are benefiting from counseling and education from trusted experts who are trained to customize their advice and guidance to meet each individual’s unique financial needs.”
“TD Banknorth was built on the philosophy that local decision making is the basis for a successful community bank and equally important to the well-being of the communities in which we live and work,” said David Ott, Chairman of the TD Banknorth Charitable Foundation. “We are pleased to continue supporting our local communities through this new program.”
Using a “train the trainer” model, NeighborWorks is creating a nationwide force of certified counselors, who have served more than 500,000 people with pre- and post-purchase guidance and education. NeighborWorks America set a goal to increase national capacity to serve more than two million individuals each year by 2007. For those receiving high-quality education and counseling, delinquent payments at the 90-day mark are cut by a third. And a recent study found that borrowers who received counseling had half the default risk of those who did not. Despite its proven advantages, it is estimated that only 15 percent of current first-time homebuyers receive adequate counseling and education.
About TD Banknorth Charitable Foundation
The TD Banknorth Charitable Foundation is the charitable giving arm of TD Banknorth Inc., a leading banking and financial services company headquartered in Portland, Maine. The Foundation’s mission is to serve the individuals, families and businesses in all the communities where TD Banknorth operates, having made over $14 million in charitable donations since its inception in 2002. The efforts of the Foundation are coordinated locally through TD Banknorth’s community relations departments and are focused on the areas of economic empowerment, youth development and community support. More information on the TD Banknorth Charitable Foundation is available at tdbanknorth.com.
About TD Banknorth Inc.
TD Banknorth Inc. is a leading banking and financial services company headquartered in Portland, Maine and a majority-owned subsidiary of TD Bank Financial Group. At January 31, 2006, TD Banknorth had over $40 billion of total consolidated assets and provided financial services to more than 1.5 million households in the Northeast. TD Banknorth's banking subsidiary, TD Banknorth, N.A., operates banking divisions in Maine, New Hampshire, Massachusetts, Connecticut, Vermont, New York, New Jersey and Pennsylvania. TD Banknorth and TD Banknorth, N.A. also operate subsidiaries and divisions in insurance, wealth management, merchant services, mortgage banking, government banking, private label credit cards, insurance premium financing and other financial services and offer investment products in association with PrimeVest Financial Services, Inc. The TD Banknorth common stock trades on the New York Stock Exchange under the symbol “BNK”. For more information, visit http://www.tdbanknorth.com.
About NeighborWorks® America
NeighborWorks® America provides financial support, technical assistance and training for communities across the nation, including the NeighborWorks network – a nationwide network of more than 240 community development organizations working in more than 4,500 urban, suburban and rural communities across America. These organizations engage in revitalization strategies that strengthen communities and transform lives. In the last five years alone, NeighborWorks organizations have generated more than $9 billion in reinvestment and helped more than 500,000 families of modest means purchase or improve their homes or secure safe, decent rental or mutual housing.
