The objective of a modification in residential-secured lending is to convert a troubled asset into a performing one. A well-implemented streamlined modification program will mitigate losses and enhance brand image, and it can show a positive return.

In November the Federal Deposit Insurance Corp. published the FDIC/IndyMac "mod-in-a-box" process for modifying loans. Major financial institutions have endorsed this approach and announced similar programs.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.