Obama Orders Lenders To Cut Mortgage Payments For Unemployed

Obama Orders Lenders To Cut Mortgage Payments For Unemployed

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sold_sign.jpgThe Obama administration launches another program to attack the foreclosure crisis, by spending TARP funds from the emergency bailout program for the financial system, and requiring lenders to slash or eliminate monthly mortgage payments for the unemployed for between 3-6 months..

Economist Mark Zandi estimates it would be a significant boost to the US economy.

Banks and other lenders would have to reduce the payments to no more than 31 percent of a borrower’s income, which would typically be the amount of unemployment insurance, for three to six months. In some cases, administration officials said, a lender could allow a borrower to skip payments altogether.

(READ the good news for unemployed homeowners in the Washington Post)

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