66 Pages Posted: 28 Oct 2011 Last revised: 29 Mar 2012
Date Written: October 27, 2011
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.
Keywords: Mortgage, Modification, Default, Foreclosure, HAMP, New York City
JEL Classification: G21, G38, L85, R31, R38
Suggested Citation: Suggested Citation
Voicu, Ioan and Been, Vicki and Weselcouch, Mary and Tschirhart, Andrew John, Performance of HAMP Versus Non-HAMP Loan Modifications – Evidence from New York City (October 27, 2011). NYU Law and Economics Research Paper No. 11-41. Available at SSRN: https://ssrn.com/abstract=1950430 or http://dx.doi.org/10.2139/ssrn.1950430