Archive for November 20th, 2008

Home Loan Modifications May Still Pose Risk For Banks

Thursday, November 20th, 2008

Banks who provide mortgage loan modifications for homeowners could potentially undermine the publically traded banking sector by masking possible losses.  Historical evidence suggests that even when mortgage lenders modify mortgage terms for at-risk borrowers – cutting interest rates, principal or extending the loan’s life – a hefty portion of those borrowers default within a year [...]