Ocwen Financial Corp., a servicer of subprime mortgages, said the 60-day delinquency rate on its modified mortgages after six months is 24.6%, a figure considerably below industry averages.

The Office of the Comptroller of the Currency had reported a few days earlier that overall 53% of borrowers were more than 60 days past due six months after a modification.

William Erbey, Ocwen's chief executive officer, said in a press release issued last week that the salient issue in the success of modifications for troubled borrowers is whether the modified loans are properly designed.

He praised Federal Deposit Insurance Corp. Chairman Sheila Bair's defense of modifications as a loss mitigation tool.

"We believe she is correct that the redefault problem lies with how some servicers are doing modifications, not with the concept of modification," Erbey said. "It's possible to do modifications right."

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