Tortuous, really. Like standing there watching Sisyphus struggle to push that big rock up the hill, time and time again, only to have it roll right back down. Feels like a punch in the gut.
And so it goes with the administration’s latest scheme, now to get mortgage servicers to reduce principle.
The move comes on the heels of the latest mortgage metrics report for the fourth quarter from the Office of the Comptroller of the Currency and Office of Thrift Supervision. The report says more than half of modified loans fell more than 60 days past due by 9 months after modification, and it’s closer to 60% of mods re-defaulting after 12 months.
Somehow, we’re not feeling too confident that this latest attempt is the magic elixir.
As the OCC report says, servicers expect new foreclosures to increase in upcoming quarters “as many of the mortgages that are seriously delinquent may eventually result in foreclosure as alternatives that prevent foreclosure are exhausted.”
Exhausted, like Sisyphus, pushing that rock.