New York City is set to be the first state to be able take out a mortgage on a home and pay off its bills, as the Federal Reserve continues to hike interest rates and bond yields.
According to Bloomberg, the city’s Financial Services Authority announced Thursday that it would allow borrowers to refinance loans that had outstanding balances as long as they maintain a balance of at least 10 percent.
The agency also said it would work to make it easier for people to pay off their mortgages in the future, while also expanding the program to help people with down payments.
In January, the Federal Housing Finance Agency announced it would provide up to $1,000 in federal financial aid for borrowers who had an outstanding balance of more than $500,000, up from the current $250.
The loan forgiveness program is aimed at helping homeowners in the city and surrounding areas, as well as borrowers in rural areas.
The move comes just weeks after President Donald Trump’s administration pushed through a $5.5 trillion package of tax cuts that would help many low- and middle-income households, including the nation’s poorest residents.
But it comes as the U:s economy continues to contract.
The latest jobs data from the Bureau of Labor Statistics showed job gains fell 0.4 percent in May, compared with a 0.9 percent decline in April.
In May, unemployment hit 4.9%, its highest level since December 2016.
