The importance of principal write-downs: subprime mortgage modifications and re-default
Interesting article on the mortgage issues. I'm sure we'll be reading white papers for many years to come analyzing why we got here.
Whenever I blog about foreclosures or loan mods or negative equity, commenters on this blog usually point out that the only way out of this mess is through principal reductions of underwater mortgages. Well here's the academic research (courtesy of the Federal Reserve) to prove it. Second Chances_Subprime Mortgage Modification and Re Default
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