There is debate over why lenders are unwilling to modify more mortgages, ranging from structural to macroeconomic factors. This paper introduces the information problem that borrowers and lenders face and examines third party mediation as a mechanism to overcome this problem. Mediation offers...

We examine the evolution of mortgage modification terms obtained by distressed subprime borrowers during the recent housing crisis, and the effect of the various types of modifications on the subsequent loan performance. Using the CoreLogic LoanPerformance dataset that contains detailed loan...

We examine the evolution of mortgage modification terms obtained by distressed subprime borrowers during the recent housing crisis and the effect of the various types of modifications on the subsequent loan performance. Using the CoreLogic Loan Performance dataset that contains detailed loan...