WASHINGTON (AP) — The Federal Deposit Insurance Corp. is encouraging companies that buy failed banks with troubled home loans to extend temporary help to people who have lost their jobs and can't pay their mortgage bills.
Under the FDIC's recommendations, borrowers' monthly payments would be reduced for at least six months. The aid would apply to borrowers who have lost their jobs or those who have faced a drop in salary.
"With more Americans suffering through unemployment or cuts in their paychecks, we believe it is crucial to offer a helping hand to avoid unnecessary and costly foreclosures," FDIC Chairman Sheila Bair said in a statement Friday.
The plan would apply to buyers of deposits and assets of failed institutions that sign loss-sharing agreements with the FDIC.
The agency in recent months has signed about 50 such agreements with those banks, under which it has agreed to take on most of the risk on about $80 billion in loans and other assets.
Report a correction
In order to make comments, you must verify your account.
In order to comment on SunJournal.com, you must use your real name and include the town in which you live in your profile. A member of our staff will call you to verify this information. To join in, fill out your user profile completely and check the box "please verify my status." We'll get back to you within one business day to verify your account.
Login or create an account here.
Our policy prohibits comments that are:
- Defamatory, abusive, obscene, racist, or otherwise hateful
- Excessively foul and/or vulgar
- Inappropriately sexual
- Baseless personal attacks or otherwise threatening
- Contain illegal material, or material that infringes on the rights of others
- Commercial postings attempting to sell a product/item
If you violate this policy, your comment will be removed and your account may be banned.