BANK LOAN MODS RE-DEFAULTS- Old news, New Statistics
source: http://ml-implode.com/staticnews/2009-07-11_BankLoanModReDefaultsAHorribleRecordBarrons.html
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Some excerpts of the default data: on initially-current loans, Countrywide modified $87M of loans but 59% had re-defaulted within 10 months (this is the worst performance of initially-current loans). Wells Fargo came in second, with 49% re-defaults on $334M of modifications.
On initially-delinquent loans, Wells Fargo came in 11th (tied with Ameriquest), with 70% re-default on $605M of loans. Countrywide came in first again, with 80% re-defaults, which ties it with WaMu (the two thrifts modified $388M and $566M of loans respectively).
The best record on initially-current loans was a "mere" 34% re-default rate after 10 months. By contrast, the best record for initially-delinquent loans was 62% -- held by (the non-WaMu part of) JP Morgan Chase.
REPUDIATE BAD DEBT!!!
DO NOT MODIFY OR REFINANCE LOANS YOU CANNOT AFFORD TO BEGIN WITH THAT OR
PERMIT THE ECONOMY TO SUFFER.
On initially-delinquent loans, Wells Fargo came in 11th (tied with Ameriquest), with 70% re-default on $605M of loans. Countrywide came in first again, with 80% re-defaults, which ties it with WaMu (the two thrifts modified $388M and $566M of loans respectively).
The best record on initially-current loans was a "mere" 34% re-default rate after 10 months. By contrast, the best record for initially-delinquent loans was 62% -- held by (the non-WaMu part of) JP Morgan Chase.
REPUDIATE BAD DEBT!!!
DO NOT MODIFY OR REFINANCE LOANS YOU CANNOT AFFORD TO BEGIN WITH THAT OR
PERMIT THE ECONOMY TO SUFFER.
