We study the effects of securitization on renegotiation of distressed residential mortgages over the current financial …-modification default rates by 9% (3.5% in absolute terms). Our findings support the view that frictions introduced by securitization create …

for the low number of modifications to date than contract frictions related to securitization agreements between servicers …

other mortgage characteristics, including sub-prime, securitization and leverage. Where IOs were popular, their use does not …