Certified Forensic Loan Auditors, LLC

  Upcoming Classes

Search CFLA's Article Archive:

The Effect of Mortgage Securitization on Foreclosure and Modification

scholar.harvard.eduJune 22, 2013


Kruger, Samuel. 2013. The Effect of Mortgage Securitization on Foreclosure and Modification.


Does securitization affect the foreclosure and modification decisions of mortgage servicers? I exploit the third quarter 2007 freeze of private mortgage securitization as an exogenous change in probability of securitization for jumbo mortgages. The unanticipated freeze left banks holding mortgages that were intended for securitization when they were originated. Loans made shortly before the freeze are similar to loans made earlier in the year but were significantly less likely to be securitized. Using origination-month as an instrument for jumbo securitization, I estimate that before the Home Affordable Modification Program (HAMP) private securitization increased foreclosure probability (by 8.7 ppt for foreclosure initiation and 5.2 ppt for foreclosure completion) and decreased modification probability (by 2.3 ppt). After implementation of HAMP, privately securitized loans are no longer biased against modification, but the foreclosure bias persists.

Download the Article (PDF)


Back to June 2013 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
BBB Logo


Contact us or view our Sample Documents & Audits by completing the form below.

International Bloomberg Securitization Audits


DVD Sets Only $99


FREE Mortgage Fraud Analysis


Order Cutting-Edge Services Now


Quiet Title Packages from Licensed Attorneys


Affiliate Services


CFLA Sponsored Attorney Links


Take-Home Education Package