But economists said the true test will be how many trial modifications become permanent and how many borrowers default on their new loan arrangements.
“What has surprised us is the numbers that have made three, four, or even five payments, but still haven’t gone to close because the final documents aren’t in place,” Bisenius said. It is too soon to know how many trials are failing, he added.
The volume of completed trial modifications is “not as high as we’d hoped because of documentation,” said Douglas Potolsky, a senior vice president of capital markets at Chase Home Lending, at the Mortgage Bankers Association conference.
