The Federal Deposit Insurance Corp. persuaded the banks that are sharing losses with the agency to temporarily reduce mortgage payments for those borrowers who are unemployed, this has been done as a part of a broader effort to control home foreclosures.
The FDIC said yesterday in an statement that was released in Washington that the banks, by which failed lenders are bought, should for at least six months reduce the loan payment to “an affordable level’’ for homeowners who are without a job or underemployed.
FDIC chairwoman Sheila Bair said in the statement that this is a win-win for the borrower, who can now remain there in his or her home while he may search for a new job, and the acquiring institution, which will continue to receive payments on the loan.
Bair has been prodding US banks so that they may help those borrowers who are struggling to get new jobs so that they may avoid foreclosure and the recommendation is aimed at those lenders that acquired failed institutions having an agreement to share any future losses with the FDIC.
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