"Sovereign has been deeply committed to serving Massachusettscommunities since we opened our doors more than four years ago,"says Joe Campanelli, president and COO, Sovereign Bank of NewEngland. "This agreement is an enhancement on what we have alreadybeen able to accomplish and what our aspirations are to serve thesocially and economically diverse communities in theCommonwealth."

One of the programs that benefits from the agreement is the SoftSecond mortgage program, which offers first time homebuyers lowdown payments and interest rates and allows them to eliminate PMI,among other things, thus enabling them to afford homes. "This is avery important program," Tom Callahan, executive director of theMassachusetts Affordable Housing Alliance, tells GlobeSt.com. "It'sthe state's most affordable program for first time homebuyers."

The agreement also has designated funds for a number of otherprograms. Small business lending programs will receive $1.2billion; consumer loans will benefit from $1.2 billion. Acommercial real estate development part will receive $222 millionand equity investments will account for $30 million.