It's simple you math, you have a 11 borrowers that can't afford their homes. No matter if you give them loan mods they can't afford it and never could afford it under a 30-year fix rate mortgage. However, their are some people that can't afford due to jobless.
"When people make noises about housing getting better they point to the decline in nonperforming loans, but looking at nonperforming loans and re-performing loans together there's been no improvement," she said.
Of the roughly 3.4 million re-performing loans, 70% will eventually fail, she said. And the default rates aren't any better within non subprime loans, as all performing loans that were making payments for four years "are now defaulting at a very, very rapid rate."
"Equity matters, the combined loan-to-value is the single most important factor in default," Goodman said.
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While the government's Home Affordable Modification Program, or HAMP, "has been very valuable because it provided a blueprint for more significant mods," the redefault rates remain high even with significant payment reduction.