The loss mitigation flexibilities enjoyed by banks and thrifts servicing mortgages held in portfolio have not led to markedly stronger performance compared with mods allowed by the more stringent government-sponsored enterprises. New data released this month by the Office of the Comptroller of the Currency and the Office of Thrift Supervision suggest that portfolio servicers’ emphasis on principal reduction has had limited benefits on overall mod performance. Banks and thrifts serviced $1.69 trillion in portfolio mortgages at the end of the first quarter of 2011, according to the Inside Mortgage Finance Bank Mortgage Database. The portfolio holdings were down by ... [contains one data chart]