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 December 31, 2008

Foreclosures on the Rise despite Increased Loan Modifications
A report published December, 28 by the federal Office of the Comptroller of the Currency along with the Office Thrift Division stated that mortgage delinquencies and foreclosures continue to increase nationwide.
Default rates on mortgages are increasing at a faster rate than that of loan modifications. John C. Dugan, Comptroller of the Currency stated his frustration and expressed his opinion for the need to look into why loan modifications are not working as well as planned.

The recent report stated:

The third quarter showed increased in default rates in all loan categories, sub-prime and prime.

Loan modifications offered by both banks and thrifts showed an increase of 13% over the second quarter.

Modified loans which were held on the books of servicing banks and thrifts experienced a default rate of 35.06% after three months and 50.86% after six months when compared with loans which are held by third parties.