Performance of HAMP Versus Non-HAMP Loan Modifications – Evidence from New York City
Office of the Comptroller of the Currency (OCC)
New York University School of Law
New York University (NYU) - Furman Center for Real Estate and Urban Policy
Andrew John Tschirhart
Government of the United States of America - Office of the Comptroller of the Currency (OCC)
October 27, 2011
NYU Law and Economics Research Paper No. 11-41
Policymakers are relying heavily on mortgage modifications to address the foreclosure crisis. However, not enough is known about whether modifications actually help borrowers stay current over the long run, or about what kinds of modifications are most successful. We use logit models in a hazard framework to explain how loan, borrower, property, servicer and neighborhood characteristics, along with differences in the modifications, affect the likelihood of redefault. The dataset includes both HAMP and proprietary modifications. Our results demonstrate that borrowers who receive HAMP modifications have been considerably more successful in staying current than those who receive non-HAMP modifications.
Number of Pages in PDF File: 66
Keywords: Mortgage, Modification, Default, Foreclosure, HAMP, New York City
JEL Classification: G21, G38, L85, R31, R38
Date posted: October 28, 2011 ; Last revised: March 29, 2012
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