PT - JOURNAL ARTICLE AU - Laurie S. Goodman AU - Roger Ashworth AU - Brian Landy AU - Lidan Yang TI - Modification Success—<em>What Have We Learned?</em> AID - 10.3905/jfi.2011.21.2.057 DP - 2011 Sep 30 TA - The Journal of Fixed Income PG - 57--67 VI - 21 IP - 2 4099 - https://pm-research.com/content/21/2/57.short 4100 - https://pm-research.com/content/21/2/57.full AB - 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