Moody’s Investors Service has come up with a new metric that evaluates how much cash a subprime mortgage servicer generates from loan modifications and liquidations versus how much it loses through loss mitigation and inaction on delinquent loans. A quick resolution may be the single most decisive factor in maximizing cash flow, whether it’s an effective loan modification or an outright foreclosure and liquidation. “It’s better to do it quickly,” said Peter McNally, a vice president and senior analyst at Moody’s who contributed to the development of the metric. “A modification is good if you make the...