Mortgage unit of The Boston Company introduces two innovative mortgage products with monthly rate adjustment; Offers lower long-term cost to jumbo mortgage borrowers

Business Wire, May 15, 1995

PITTSBURGH--(BUSINESS WIRE)--May 15, 1995--Mellon Bank Corporation (NYSE: MEL) today announced that its Boston Company jumbo mortgage group has introduced two adjustable-rate jumbo mortgages -- "Prime Monthly Mortgage" and "One Month CD Mortgage" -- with interest rates that can readjust every month. Jumbo mortgages are mortgages of $250,000 and above.

The Prime Monthly Mortgage's interest rate is based on the prime rate, and the One Month CD Mortgage's interest rate is based on the typical one-month certificate-of-deposit rate in the secondary market. Both rates are published daily in The Wall Street Journal.

"These mortgages should generate strong interest among the high net worth borrowers we serve through our national network," said Paul Calhoun, senior vice president and national manager of The Boston Company's jumbo mortgage group. "In particular, our two new products will appeal to those who feel that interest rates are near their peak or have begun to move down."

"Compared with adjustable mortgages that reset yearly, our new monthly adjustable products offer a lower start rate, lower margin, lower life cap, and, most importantly, the opportunity for a lower long-term cost to the borrower. We believe our fully indexed rate is the lowest rate in the market," Calhoun said.

With introductory rates of 5.49 percent (prime-based product) and 5.99 percent (CD-based product) for a limited period, both of the new monthly adjustable mortgages are offered with no points. The lifetime cap is 12 percent or 5 percent over the starting rate, whichever is higher. Both can be modified to another adjustable rate or converted to a fixed rate after the first year, and both mortgages offer an interest-only feature for the first 10 years of their term.

With a portfolio of more than $4 billion in loans, The Boston Company's jumbo mortgage unit is a nationally recognized leader in the market for mortgages on large primary residences and secondary homes. The group serves clients in 42 states through offices in Massachusetts, Pennsylvania, Illinois, New York, New Jersey, California and Virginia.

The Boston Company's jumbo mortgage group is a unit of Mellon Private Asset Management, which represents the combined personal investment and mortgage lending businesses of Mellon Bank Corporation and The Boston Company, which Mellon acquired in 1993. One of the largest providers of personal trust and investment services in the United States, Mellon Private Asset Management has approximately $34 billion of client assets under management or administration. Mellon Private Asset Management is a registered service mark of Mellon Bank Corporation, a major financial services company headquartered in Pittsburgh.

CONTACT: Mellon Bank Corporation

Margaret K. Cohen, 412/234-0850

or

Laurie Chase & Co.

Laurie Chase, 415/781-1545