Fitch: Loans Receiving Balance Reductions Re-Default More
Though principal balance reductions seem to be all the rage in the loan modification world, they may not be as effective as simple principal and interest payment reductions, according to a report from Fitch Ratings.
The company said initial, but limited data for modifications with large balance reductions (20% or more) exhibited higher 60 day+ re-default rates than loans with decreased monthly mortgage payments of Read more