TY - JOUR T1 - Modification Success—<em>What Have We Learned?</em> JF - The Journal of Fixed Income SP - 57 LP - 67 DO - 10.3905/jfi.2011.21.2.057 VL - 21 IS - 2 AU - Laurie S. Goodman AU - Roger Ashworth AU - Brian Landy AU - Lidan Yang Y1 - 2011/09/30 UR - https://pm-research.com/content/21/2/57.abstract N2 - In this review of modification activity, the authors show that the key ingredients of modification success are principal reduction, substantial pay relief, and modifying early in the delinquency cycle. When all three of these ingredients are present, a modification has a good chance of success. They also demonstrate that success rates on modifications generated by the market’s methods are overstated: These methods do not take into account loans that have liquidated or re-defaulted on an earlier modification.TOPICS: MBS and residential mortgage loans, legal/regulatory/public policy, credit risk management ER -