HousingWire Propaganda Not To Be Believed, Part 1: Re-Analyzing the Data
Friday HousingWire ran a six-and-a-half page big bank/mortgage servicer propaganda piece called “Living Large“, by Tom Showalter. The article, subtitled “A person’s lifestyle plays into whether they will pay their mortgage after a loan modification”, purports to explain why people default on loan modifications. Instead, it spins a bank-exonerating morality play not justified by the data supposedly being interpreted.
I’ll get to the morality play and the “irresponsible borrower” propaganda it represents in my next post to keep this one to readable length. First, to clearly show the wrongness of the bank-serving mythology being sold as its interpretation, I’m going recap the data the ‘article’ presents to answer the questions the underlying study apparently aimed at: why did so many people with mortgage mods made in 2009 default on those mods by 2011? And what needs to be done to make mods more successful going forward?
Note: I can’t assess the data quality because I don’t have access to the underlying tables and sourcing info; I am working off HousingWire’s/Showalter’s analysis of it. I just take his numbers at face value, though as I discuss below, however, something is screwy either in the some of the data or Showalter’s reporting of it.
Be sure to check out the rest here…
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These modificaitons are crap! Sorry Abigail, but all they have done is sweep the fraud under the rug and become game changers. Modifications don’t help people at all….they are just re-aranging the debt to the back end and usually has a 5 year plug in it to where the payments will escalulate back up again. What economists fail to calculate is the cost of living that continues to rise annually at a much higher pace than income. DUH????!!!! The cost of energy is esculating and at the same time as the cost of food, clothing and other necessities. The only real way to solve the problem for those mortgages that are NOT wrought with fraud is to do refinancing with principal reductions and at market rates. As for those who are riddled with fraud, I say, cancel the d*** mortgage. The lenders have already been paid 2 to 3 times over….Modifications? The biggest joke pulled on US citizens.
Good analysis at the link…