A new study suggests homeowners who receive mortgage modifications are more faithful on other loans even if they later default on the original mortgage loan modification agreement, according to TransUnion, one of the three nationwide credit bureaus.
This improved performance occurred despite the fact that nearly six in 10 mortgage modifications went 60 or more days delinquent 18 months following the modification date, the credit bureau reported.
"The purpose of this study was to learn how consumers performed on other loans opened following serious mortgage delinquency, and what impact mortgage mods might have on that performance. To do this, first we needed to determine the outcome of certain mortgage loan modification programs," said Steve Chaouki, group vice president in TransUnion's financial services business unit.
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