Affordable Housing Institute : US

Unlike equity investing, where trust is paramount, the genius of modern lending is that it enables the provision of capital to people one does not trust — because we repose our trust not in the individual borrower, but rather in the network of professionals and documents.  The loan is valid by a holy trinity of […]

[Continued from previous Part 1, Part 2, and Part 3 ]

 
Now that we’ve devoted about 3,500 words to expositing Joseph R. Mason’s new article, Mortgage Loan Modification: Promises and Pitfalls, we can finally evaluate his proposed solution.
 

It’s easy to untangle this mess
 
First, a teaser:
 
Like securitization, modification has evolved in a regulatory vacuum. 
 
How dare those markets […]

[Continued from previous Part 1 and Part 2.]
 
In my ongoing exploration of Joseph R. Mason’s new article, Mortgage Loan Modification: Promises and Pitfalls, we’ve hit the curious fact that loan servicers affiliated with originators have incentives to keep up appearances. 
 
In this, Professor Mason concludes ulterior motives:
 
One of the key reasons loan modification has grown has […]

[Continued from yesterday’s Part 1.]  

Yesterday’s post introduced and teased Joseph R. Mason’s new article, Mortgage Loan Modification: Promises and Pitfalls, exploring how loans in the subprime mess can be successfully recapitalized — or not.  

Nothing to worry about
 
As I’ve posted six months ago, today’s lending business is intermediated — there are many intermediaries in the money […]

 
“How’s your wife?”
“Compared to what?”  Ba-da-bing!
– Henny Youngman one-liner
 
As the subprime mess continues to unfold, with rate and payment resets looming, Federal and state agencies rushing to offer refinancings or borrower relief, a gradually swelling chorus is advocating loan modifications and restructurings.  As I’ve previously posted, securitization has made loan modification more complicated, and a […]