Friday, February 26, 2010
The Mortgage Bankers Association (MBA) proposed a plan that would be a great relief for the unemployed as it would help them to pay their mortgages for up to nine months.
According to the proposal outlined by MBA, the loan servicers should 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 had asked the Treasury Department to support the program by providing loans to loan servicers so that they would cover the payments.
John Courson, CEO of the association said that borrowers with such a precipitous drop in income can't qualify for most loan modification programs, so they were looking for ways to allow those borrowers to keep their homes while they look for another job.



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