Loss severities rose across the board for all the indices in the lastest ABX Remittance reports, according to a report from Bank of America Merrill Lynch.

The severities increased by 3.5, 1.3, 0.7, and 2.7 points to 83.5%, 85.1%, 92.4%, and 93.8%, for the 06-1 through 07-2 indices, respectively. The rise in loss severities was partly caused by an increase in losses due to loan modifications resulting from forbearance recognition, principal forgiveness, and/or the recovery of servicer advances.

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