FDIC Encourages Payment Reduction for Unemployed--ZT
The Federal Deposit Insurance Corp. is encouraging its
loss-sharing partners to temporarily reduce mortgage payments
for at least six months when borrowers lose their jobs.
With more Americans suffering through unemployment or cuts
in the paychecks, we believe it is crucial to offer a helping
hand to avoid unnecessary and costly foreclosures, FDIC
chairman Sheila Bair said.
Now FDIC wants homeowners who lose their job to get immediate
relief. This is simply good business since foreclosure
rarely benefits lenders and would cost the FDIC more money,
not less, chairman Bair said.