Boston Offers Mortgage Relief for Jobless
The Federal Reserve Bank of Boston has an innovative plan to help home owners who have lost their jobs.
The Boston Fed proposes giving enough money to the unemployed to pay for a quarter to half of their mortgages. The assistance would last for up to two years or until the recipients got a new job, whichever comes first.
The Boston Fed estimates that this unemployment insurance would cost $50 billion, if an estimated 3.5 million home owners received it.
To discourage people from just taking a paid vacation, the proposal would require that lost earnings must have comprised at least 25 percent of total household income.
Source: Forbes, Maurna Desmond