Bank of America Corp. (NYSE: BAC) is planning to give customers collecting unemployment a break on their mortgage payments.
Under a proposed plan, the Charlotte, N.C.-based bank would give mortgage customers that are collecting unemployment benefits up to nine months without paying a mortgage payment, according to a report from the Charlotte Observer. Customers participating in the program would have to agree to sign over their house to the bank if they are unable to find a job within the nine month period.
The bank would give each customer participating in the program at least $2,000.
For Bank of America to implement the plan, it will need Congressional approval,
“It’s an innovative way for Bank of America to demonstrate its working with its customers,” Mark Williams, a former Federal Reserve bank examiner, told the Observer. “Regulators should view this as a positive step as well.”
