PT - JOURNAL ARTICLE AU - Laurie S. Goodman AU - Roger Ashworth AU - Brian Landy AU - Lidan Yang TI - Mortgage Modification Activity—Recent Developments AID - 10.3905/jfi.2012.21.4.055 DP - 2012 Mar 31 TA - The Journal of Fixed Income PG - 55--68 VI - 21 IP - 4 4099 - https://pm-research.com/content/21/4/55.short 4100 - https://pm-research.com/content/21/4/55.full AB - This very detailed article focuses on recent trends in modification activity in the non-agency securitization market. The authors focus primarily on two trends: the increased share of principal reduction modifications and the increased share of second and subsequent modifications. They show that principal reductions result in higher modification success rates than other modification types, even controlling for pay relief. They also show that second and subsequent modifications have higher re-default rates than first modifications. Finally, the authors focus on the variations in modification activity and modification success rates among subprime servicers.TOPICS: MBS and residential mortgage loans, big data/machine learning, analysis of individual factors/risk premia