Federal data shows when financial institutions work with homeowners to lower mortgage payments the default rate drops.
A report from the Office of the Comptroller of the Currency and Office of Thrift Supervision showed recent modification efforts have lead to a decrease in default rates.
In the second quarter of 2009, only 18 percent of borrowers who had their mortgages modified were delinquent after three months. In the first quarter the delinquency rate was over 30 percent. With a 69 percent increase in home retention actions for the third quarter of 2009 the trend should continue.
It has been my position from the beginning of the foreclosure crisis that loan modification is the best option for keeping families in their home. I will continue to push legislation that establishes a mortgage loan modification process in Wisconsin.
The high unemployment rate means we still have not seen the end of the foreclosure crisis. We need to bring more jobs into Wisconsin and replace those that have been lost. I have job creation legislation pending that will not only provide Wisconsin citizens with more options in their purchasing decisions, but will also create jobs in Wisconsin