Another Massachusetts First

Massachusetts is certainly known as being a state of firsts, from gay marriage to mandatory health care for residents. But now the state is the first to get money from a Wall Street investment bank involved in subprime lending.

In today’s Boston Globe, Jennifer McKim outlines the settlement, which will allow more than 700 Massachusetts homeowners to reduce their balances and sell their homes or refinance with the new low interest rates, hopefully curtailing foreclosure for these families. The suit is a landmark in that this particular investment bank didn’t originate the loans, but rather packaged them into securities that then were sold to investors.

Now, 700 families will have a second chance at keeping their homes, a glimmer of hope and a small sign that this housing crisis may be starting to turn around.

--Alison Thompson is an account supervisor at Solomon McCown & Company. She can be reached by email at athompson@solomonmccown.com.