MBA Plan to Help Jobless Pay Mortgage
The Mortgage Bankers Association outlined a plan Wednesday that would help the unemployed pay their mortgages for up to nine months.
The MBA proposed that loan servicers reduce borrowers’ monthly payments to no more than 31 percent of their household income with the arrears added to the back-end of the mortgage.
The association asked the Treasury Department to underwrite the program by providing loans to loan servicers to cover the payments.
“Borrowers with such a precipitous drop in income can’t qualify for most loan modification programs, so we are looking for ways to allow those borrowers to keep their homes while they look for another job,” said John Courson, CEO of the association.
Source: CNNMoney.com, Tami Luhby (02/24/2010)
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