Industry NewsMarkets & Economy

Lenders more generous with loan mods

Reduced redefaults tied to lower monthly payments
Published on Sep 30, 2009

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by CareyBot

More than three out of four loan modifications made by lenders during the second quarter reduced borrowers' montlhy payments, up from 54 percent in the first three months of the year, according to a report released today by federal bank regulators.

That's welcome news, because loan modifications that reduce borrowers' monthly payments are less likely to redefault, the report from the Office of the Comptroller of the Currency and the Office of Thrift Supervision said.