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WASHINGTON — The Federal Deposit Insurance Corp. is encouraging companies that buy failed banks with troubled home loans to extend temporary help to people who have lost their jobs and can't pay their mortgage bills.
Under the FDIC's recommendations, borrowers' monthly payments would be reduced for at least six months. The aid would apply to borrowers who have lost their jobs or those who have faced a drop in salary.
"With more Americans suffering through unemployment or cuts in their paychecks, we believe it is crucial to offer a helping hand to avoid unnecessary and costly foreclosures," FDIC Chairman Sheila Bair said in a statement Friday.
The plan would apply to buyers of deposits and assets of failed institutions that sign loss-sharing agreements with the FDIC.
The agency in recent months has signed about 50 such agreements with those banks, under which it has agreed to take on most of the risk on about $80 billion in loans and other assets.
