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Home » Store » News » Non-Agency Principal Reduction Mods on the Rise

Non-Agency Principal Reduction Mods on the Rise

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Use of principal reduction in loan modifications increased in the second quarter of 2011, according to the Office of the Comptroller of the Currency. Principal reduction has gained popularity for non-agency mortgages after initially being used almost exclusively on portfolio loans. Some 8,645 principal reduction mods were completed by major banks and thrifts in the second quarter of 2011, according to the OCC. Non-agency mortgages accounted for 48.9 percent of all principal reduction mods in the second quarter of 2011, with portfolio mortgages accounting for the rest of the activity. ...
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