Lenders avoid redoing loans, Fed concludes

by Moe Bedard · 0 comments

in Home Loan News

Loan Modifications Dont WorkMortgage lenders don’t try to rework most home loans held by borrowers facing foreclosure because it would probably mean losing money, a study released yesterday by the Federal Reserve Bank of Boston concludes.

The Boston Fed’s findings suggest the Obama administration’s major effort to solve the foreclosure crisis by giving the lending industry $75 billion to rewrite delinquent loans to more affordable levels is not likely to work.

Read more from the Boston Globe

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