Loan modifications are becoming increasingly common because of the declining housing environment. Although it still remains uncertain how these modifications will play out, ABS players, specifically investors, need all possible tools to cope with the potential repercussions of changes in loan terms on the securities they are invested in. In this roundtable, we found out how market players are using data analysis to understand the impact of loan modifications on ABS portfolios. The discussion was moderated by ASR editor Karen Sibayan.
ASR: What are the most common modifications we have been seeing?