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Performance of HAMP Versus Non-HAMP Loan Modifications – Evidence from New York City

66 Pages Posted: 28 Oct 2011 Last revised: 29 Mar 2012

Ioan Voicu

Office of the Comptroller of the Currency (OCC)

Vicki Been

New York University School of Law

Mary Weselcouch

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)

Date Written: October 27, 2011

Abstract

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

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

Ioan Voicu

Office of the Comptroller of the Currency (OCC) ( email )

400 7th Street SW
Washington, DC 20219
United States

Vicki Been

New York University School of Law ( email )

40 Washington Square South
New York, NY 10012-1099
United States
212-998-6223 (Phone)
212-995-4341 (Fax)

Mary Weselcouch (Contact Author)

New York University (NYU) - Furman Center for Real Estate and Urban Policy ( email )

New York, NY 10012
United States

Andrew John Tschirhart

Government of the United States of America - Office of the Comptroller of the Currency (OCC) ( email )

400 7th Street SW
Washington, DC 20219
United States

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