Bank offers unemployment protection option for mortgage holders

April 9, 2010 - Due to the turbulent economy and uncertain job market, a Michigan-based bank has launched a new initiative to help homeowners in the instance that they lose their jobs.

In partnership with Genworth Financial, Flagstar Bank has announced the availability of its Job Loss Protection program, which is intended to help mortgage holders keep up with their payments if they unexpectedly become unemployed.

Through the program, up to $2,000 per month will be covered for a maximum of three consecutive months. Beneficiaries may take advantage of this option for a total of six months within a three-year coverage period, as long as a mortgage insurance policy is still active.

The benefit is available at no charge for homebuyers who obtain home loans at a low down payment and acquire mortgage insurance, which is required of all loans with down payments of 20 percent or less.

Bill Robinson, executive vice president of Flagstar Bank's home lending division, said that the program is intended to "provide peace of mind for buyers concerned about the employment situation in today's volatile economy."