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dc.contributor.authorHaughwout, Andrewen_US
dc.contributor.authorOkah, Ebiereen_US
dc.contributor.authorTracy, Josephen_US
dc.date.accessioned2010-05-07en_US
dc.date.accessioned2012-08-17T14:32:10Z-
dc.date.available2012-08-17T14:32:10Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/60740-
dc.description.abstractMortgage modifications have become an important component of public interventions designed to reduce foreclosures. In this paper, we examine how the structure of a mortgage modification affects the likelihood of the modified mortgage re-defaulting over the next year. Using data on subprime modifications that precede the government's Home Affordable Modification Program, we focus our attention on those modifications in which the borrower was seriously delinquent and the monthly payment was reduced as part of the modification. The data indicate that the re-default rate declines with the magnitude of the reduction in the monthly payment, but also that the re-default rate declines relatively more when the payment reduction is achieved through principal forgiveness as opposed to lower interest rates.en_US
dc.language.isoengen_US
dc.publisherFederal Reserve Bank of New York New York, NYen_US
dc.relation.ispartofseriesStaff Report, Federal Reserve Bank of New York 417en_US
dc.subject.jelG21en_US
dc.subject.jelR31en_US
dc.subject.ddc330en_US
dc.subject.keywordMortgage modificationsen_US
dc.subject.keywordsubprimeen_US
dc.titleSecond chances: Subprime mortgage modification and re-defaulten_US
dc.typeWorking Paperen_US
dc.identifier.ppn622843397en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Staff Reports, Federal Reserve Bank of New York

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