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Thursday, October 23, 2008

Comments

Annette

where do I locate a legitimate loan modification expert in No. California?

Jason Kilborn

Many people (e.g., Adam Levitin) continue to challenge the notion that any modification program can have much success given legal/contractual constraints. On that point, the following passage from Bair's testimony is quite enlightening (emphasis added):

"Initially, the program was applied only to mortgages either owned by IndyMac Federal or serviced under IndyMac Federal’s pre-existing securitization agreements, which provided sufficient flexibility. However, with their agreement, we are now applying the program to many delinquent loans owned by Freddie Mac, Fannie Mae, and other investors. We are working with the owners of the remaining mortgages to gain approval to apply the new modification program to those loans as well. LET ME EMPHASIZE THAT SECURITIZATION AGREEMENTS TYPICALLY PROVIDE SERVICERS WITH SUFFICIENT FLEXIBILITY TO APPLY THE INDYMAC FEDERAL LOAN MODIFICATION APPROACH. IN FACT, THE AGREEMENTS AT INDYMAC FEDERAL WERE MORE RESTRICTIVE THAN THOSE THAT APPLY TO MANY OTHER SECURITIZATIONS."

If this is true (and, of course, I have no reason to believe it isn't, particularly given the authoritative source), this strikes me as a VERY powerful counterpoint to Levitin's and others' pessimism as to these sorts of programs.

Thanks for following this critical issue and sharing this info--I hope Adam is listening (reading).

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