RT Journal Article
SR Electronic
T1 Modification Success—<em>What Have We Learned?</em>
JF The Journal of Fixed Income
FD Institutional Investor Journals
SP 57
OP 67
DO 10.3905/jfi.2011.21.2.057
VO 21
IS 2
A1 Laurie S. Goodman
A1 Roger Ashworth
A1 Brian Landy
A1 Lidan Yang
YR 2011
UL https://pm-research.com/content/21/2/57.abstract
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