Any chance of a link to the article. A quick scan of Google doesn’t find it.

Not sure what to make of the article but… Foreclosures will undoubtedly increase significantly, in our view, but modifications should attenuate the magnitude and change the timing.

Also not sure how much leeway the servicers have in turning the ABS bundles into underperforming assets. Somewhere, someone is holding a bond backed by hard assets and they’re expecting a certain cashflow every month for it.

They know they funded a 100 people with the knowledge that two wouldn’t pay this year and tow more wouldn’t pay next year, but the rest will pay and those that didn’t will get their house liquidated for 70 cents on the dollar and as a investor, you get your money. I don’t see the math working out for modification in more 1 or 2%