The Mortgage Brokers Association made a proposal last Wednesday to help the unemployed keep their homes. The proposal is for mortgage servicers to lower mortgage payments to 31 percent of household income for nine months. The amount of the reduction would be added to the end of the mortgage.
The Treasury would make loans available to the servicers to make up the amount of the reduction. This would keep the holder of the mortgage intact.
A concern is that nine months will not be sufficient as finding work in nine months is very optimistic.
Treasury needs to give it approval for this program to be implemented.
