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FDIC urges buyers of failed banks to help the jobless

September 12, 2009|Associated Press

The Federal Deposit Insurance Corp. is encouraging companies that buy failed banks to extend temporary help to borrowers who have lost their jobs and can't pay their mortgages.

Under the FDIC's recommendations, announced Friday, borrowers who have lost their jobs or have faced a drop in salary would get a reduction in monthly loan payments for at least six months.

The plan would apply to buyers of assets from failed institutions that sign loss-sharing agreements with the FDIC.

The federal agency in recent months has signed about 50 such loss-sharing pacts, assuming most of the risk on about $80 billion in loans and other assets.

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