Does Securitization Affect Loan Modifications?
Kevin Kleen rpakkleen@gmail.com says: July 23, 2009 at 8:38 am The most important part of Adam’s post is this paragraph: “I think servicer capacity is a major concern that applies across the board. To start with the bulk of servicer personnel at most companies aren’t even in the US; they’ve been outsourced. Doing a mod is like underwriting a new loan in a distressed situation. That’s a skill, and I don’t think it’s what servicers were looking for over the past decade when they moved operations to India. Instead, they were looking for low-cost labor for their routine ministerial tasks, and it will take a long time for the industry to acquire the workout talent it needs.” So few modifications are being done by anyone (portfolio or securitized) it’s pointless to try to parse differences between the two groups. At a minimum you would need to control for the staffing levels between the two types of servicers, and I don’t think anyone has done that. Rick Arvielo says: July 23, 2009 at 1:58 p
