The Federal Deposit Insurance Corporation's experiment in modifying loans at IndyMac Bank is still showing good results in terms of keeping borrowers in their homes with a low re-default rate of less than 16%.

The Pasadena, Calif., thrift failed in July 2008. As receiver, FDIC developed an innovative loan modification program to reduce the mortgage payments of delinquent borrowers down to 38% of their income. Starting in early 2009, monthly payments were reduced to 31% of mortgage DTI on new modifications.

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