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On Wednesday, the Mortgage Bankers Association (MBA) proposed a forbearance program that would assist the unemployed in paying their mortgages for up to nine months.

Under the new proposal, lenders and loan servicers would lower eligible borrowers’ payments to a maximum of 31 percent of their household income for as many as nine months. What makes this different from a modification, however, is that the arrears would then be added on to the back end of the mortgage loan.

As part of the proposal, the MBA has asked the Treasury Department to give loans to some lenders to cover payments to the mortgages’ investors. Treasury officials, who met with the group last week, have not yet arrived at a decision on the matter.

The association’s main goal is to help the increasing number of people who are falling behind on their mortgage payment due to job loss.

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