M&T Bank recently joined Fifth Third Bank in offering a reemployment program for homeowners who are struggling to pay their mortgages due to job loss. The program is operated by NextJob, Inc., a nationwide reemployment company headquartered in Bend, Oregon.
Early this year, Fifth Third announced that it was partnering with NextJob to provide unemployed mortgage borrowers at serious risk of default with job assistance, “including one-on-one dedicated coaching, weekly webinars and online job search software,” all at the bank’s expense. Since most defaults are due to job loss, Fifth Third became the first lender to try this creative and compassionate approach to helping borrowers avoid foreclosure.
Now M&T Bank is following suit, launching a pilot program with NextJob to provide coaching and job search assistance to delinquent borrowers at the bank’s expense.
Early results are promising. NextJob reports that, after completing the training, nearly 40% of participants in Fifth Third’s program were fully employed within 6 months, despite having been out of work for an average 22 months beforehand. NextJob CEO John Courtney has described the pilot program as “a big idea” for which “the time has come for the banking industry.”
We can only hope that more banks follow suit.
For more information on NextJob, visit their website here.