Re-Default Rates of Modified Loans: 30 or More Days Delinquent

First Quarter 2009

Modification re-default measured as 30 or more days delinquent or in the process of foreclosure is an early indicator of loans that may need additional attention to prevent more serious delinquency or foreclosure.²¹  The data showed that re-defaults measured as 30 or more days delinquent have continued to increase over time, with more than 60 percent of all modifications implemented in the first and second quarters of 2008 delinquent at nine and 12 months after the modification, respectively.  Modifications implemented in the fourth quarter of 2008 showed lower delinquencies after three months than modifications implemented in the second and third quarters.

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