Mortgage Modifications

We are experiencing a vicious cycle of mortgage defaults. It is really complicated and messy due to the securitization of mortgages that led us into this mess years ago. It would be much easier to unwind if banks held the loans on their books like the good old days.

The chart below is the primary reason we are in this nasty cycle. The combination of mortgage resets and decling home prices really is creating havoc among many homeowners.







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