WATERBURY, Conn. – Webster Bank, a subsidiary of Webster Financial Corp. (NYSE: WBS), said it is placing a 90-day moratorium on home foreclosures for Webster-owned mortgages and looking to expand mortgage-assistance programs for families at risk of losing their homes.

Webster – which operates 10 branches in Rhode Island – will temporarily suspend foreclosures for qualified homeowners who were more than 30 days delinquent on their Webster residential mortgages as of Nov. 4, the company said in a statement yesterday. Meanwhile, it will work with those customers to structure more-affordable payment plans.

In addition to its own mortgages, Webster also services mortgages owned by other financial institutions and investors. The bank noted that it cannot unilaterally suspend foreclosure on mortgages that it services but does not own.

As part of its expanded mortgage-assistance program, however, the bank will contact mortgage loan owners and investors on behalf of homeowners to see if they might qualify for other foreclosure-prevention or mortgage-assistance programs.

In addition, Webster will expand its mortgage-assistance program by reaching out to at-risk customers to see if they need help to remain current on their mortgages.

“Our goal, as always, is to identify and meet the financial needs of our customers,” said James C. Smith, Webster’s chairman and CEO.

“During this challenging economic time, we feel a heightened responsibility to assist those who are under financial pressure and are threatened with the possibility of losing their homes,” he added. “Just as my father did when he founded Webster Bank during the Great Depression, we will do everything in our power to keep people in their homes.”

To be eligible for either the moratorium or the mortgage-assistance program, borrowers must occupy the home as their principal residence; must be working in good faith to stay current on their mortgage; and must provide evidence of sufficient income to support affordable mortgage payments, Webster said.

Its mortgage-assistance efforts will focus on creating affordable, sustainable payment plans, the bank said. The program may include such options as temporarily reducing the monthly payment; extending fixed-payment periods on adjustable loans; extending mortgages beyond their current length; and refinancing loans or adjusting interest rates.

The use of these options will be based upon underwriting criteria designed to ensure that homeowners can afford the new modification terms, Webster added.

“Consistent with our goal to be New England’s bank, we continue to work closely with community groups and local governments in our markets to identify those in need of assistance,” Smith said. “And where possible, we will assist them.”

For additional information, call Webster at (800) 270-5400.

The programs are unrelated to Webster’s participation in the Treasury Department’s equity-purchased program, for which the bank received preliminary approval last week. (READ MORE)

The announcement followed the unveiling Tuesday of similar anti-foreclosure and mortgage-modification initiatives by Citigroup Inc. (NYSE: C) – which said it planned to contact about 500,000 homeowners with $20 billion in mortgages during the next six months – and government-controlled mortgage giants Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE). JPMorgan Chase & Co. last month pledged to delay foreclosures on some loans while it works to ease payments, while Bank of America Corp. already has modified 226,000 loans this year, Bloomberg News reported.

Webster Financial Corp. (NYSE: WBS) – a $17.1 billion company based in Waterbury, Conn. – is the holding company for Webster Bank N.A., a financial services company with more than 180 branches including 10 branches in Rhode Island. Additional information is available at WebsterBankOnline.com.