The Federal Deposit Insurance Corp. urged institutions that split the costs of failed banks with the agency to cut some of their new borrowers a break.

The agency recommended that acquirers of failed banks under loss-sharing agreements with the FDIC on certain assets consider six-month forbearance plans for unemployed or underemployed borrowers. Under such a plan, an institution would lower a borrower's monthly payment to a level that "should allow for reasonable living expenses after payment of mortgage-related expenses," the FDIC said.

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