Comparing the Performance of Home Affordable Modification Program (HAMP) Modifications and Non-HAMP Modifications: Early Results
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چکیده
In the second half, econometric analysis (regression testing) is used to isolate the key factors affecting HAMP modification performance and to compare the performance of loans modified through HAMP with other similarly delinquent loans. The innovation in this study comes from the merging of HAMP program data with a commercial loan performance database, which allows HAMP-modified loans to be compared directly with two alternate control groups consisting of loans that were modified outside of HAMP and loans that were similarly delinquent but never received a modification. Using these control groups, the average treatment effect of the modifications can be measured, independent of the underlying differences between the modified and unmodified loan populations. The HAMP loans and the two control groups were restricted to loans that are part of private label mortgage-backed securities (PLS).
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