Essay: A New Proposal for Loan Modifications

Yale Journal on Regulation, Vol. 26, No. 2, pp. 417-429, 2009

13 Pages Posted: 26 Oct 2011

See all articles by Christopher J. Mayer

Christopher J. Mayer

Columbia Business School - Finance and Economics; National Bureau of Economic Research (NBER)

Edward R. Morrison

Columbia Law School

Tomasz Piskorski

Columbia Business School - Finance and Economics

Date Written: January 2009

Abstract

We propose a new three-pronged plan to address the recent harmful flood of foreclosures. Our plan would address the major barriers that inhibit the ability of third-party servicers to modify mortgages the way portfolio lenders are now doing with greater success. The plan provides greater compensation for servicers to perform their duties, removes legal constraints that inhibit modification, and addresses critical second liens that often get in the way of effective mortgage modifications. Our plan has more modest costs than competing plans and is likely to be the most effective while still protecting the rights of investors in mortgage-backed securities.

Suggested Citation

Mayer, Christopher J. and Morrison, Edward R. and Piskorski, Tomasz, Essay: A New Proposal for Loan Modifications (January 2009). Yale Journal on Regulation, Vol. 26, No. 2, pp. 417-429, 2009. Available at SSRN: https://ssrn.com/abstract=1949308

Christopher J. Mayer (Contact Author)

Columbia Business School - Finance and Economics ( email )

3022 Broadway
New York, NY 10027
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Edward R. Morrison

Columbia Law School ( email )

435 West 116th Street
New York, NY 10025
United States

Tomasz Piskorski

Columbia Business School - Finance and Economics ( email )

3022 Broadway
New York, NY 10027
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
297
Abstract Views
1,361
rank
101,337
PlumX Metrics