Loan Modification Data - Identifying What Works

Regulators are constantly looking at data to identifyways. Here are just a few of the types of mortgage
what works and what doesn't when it comes to loanmodifications they look for. Made monthly payments
modification performance. They hope to find existingor rising principal balances, reduced payments, they
mortgage modification strategies create a positivehave to be at least 10%, and if there hasn't been
affect that will help rescue distressed homeownersany noticeable impact at all on the homeowner.
from their foreclosure situation.This is information on banks is extremely important
The Office of the Comptroller of the Currencyas it will help inform lenders and policymakers as to
(OCC) and the Office of Thrift Supervision (OTS) arewhat type of modifications work and which one don't
expanding the scope of loan modificationwork. The OCC and OTS are trying hard to
performance and gather data of borrowers fromcontinually improve loan modification data collection to
banking institutions to narrow mortgage modificationensure that the results are accurate, informative and
strategies. The primary objective is to make theseuseful in so we can bandage the nation's foreclosure
loan modifications both affordable for homeownerscrisis. Both agencies, the OCC and OTS, have a joint
and avoid scams from modification companies. Theyprogram that involves data from 35 million mortgages
look to see whether borrowers got their monthlyin the U.S. They collect nearly twice that much now,
principal and interest payments lowered, and whethercapturing nearly 3 billion pieces of data. They also
they caught up or fell behind again.track mortgage modifications after 60 days after
These two agencies are constantly studying andthey have been modified, to find out if homeowners
reviewing loan modification performance in severaldefaulted again within the period of time.