Frank To Propose Loan Plan For Unemployed Borrowers

With the unemployment rate having reached a 26-year high of 9.8% in September, Rep. Barney Frank, D-Mass., asserts that Troubled Asset Relief Program funds repaid by banks should be used to help unemployed borrowers avoid foreclosure.

Frank, chairman of the House Financial Services Committee, plans to introduce legislation next week that would direct $2 billion of repaid funds to borrowers who are out of work and at risk of foreclosure, Bloomberg reports.

"We have a new wave of foreclosures coming not from people who got loans that they shouldn't have gotten, but people who got loans that they clearly could afford, but prolonged unemployment has put them in a tough situation," Frank told Bloomberg Monday.

SOURCE: Bloomberg

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