With subprime borrowers facing resets on interest rates within the next few months and lacking the ability to refinance, loan modifications may be the "best and possibly the only option remaining in order to keep these borrowers in their homes," according to a recent report from Fitch Ratings.

However, conflicting investor interests, plus the time and money needed to modify the loan coupled with the risk of redefault, raise questions whether the juice is worth the squeeze. Market players seem to think so, and volume is on the rise.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.