I note the Economist (July 9) reports that a trio of Federal Reserve economists sampled mortgage data and found:
Only 8% get modified.
50% of renegotiated loans are delinquent again within six months.
Almost 1/3 of seriously delinquent borrowers "self cured" within a year.
As a Bank, it makes you want to sit it out if a modification only gets half the folks out of trouble and a third of them stand behind their commitments and get current within a year, doesn't it.
It is interesting that this is the only place I saw any report on this data and I've heard no policy or political reaction.