Sunday, February 07, 2010

Orange County Register On Loan Modifications

The Orange County Register. “Are all these loan modifications we keep hearing about actually helping homeowners avoid foreclosure, and thus helping the housing market and economy? Tom Mitchell, a senior analyst who covers financial stocks at Miller Tabak & Co., agreed that banks’ modified loans may be skewing the picture.”

“‘We now have to consider the [modified loans] as a kind of shadow group of nonperforming assets,’ Mitchell said. ‘It’s reasonable to say that for most banks, if the loans had not been [restructured], they would have been nonperformers.’”

1 comment:

Kim said...

I agree. I work for a default loan processing company, and as I go through these poor people's files, all I see is that these people in default have already gotten loan mod's, as they are called, and still, they are in danger of losing their homes shortly.

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