AUGUST 20, 2010: According to Calculated Risk, About 422 thousand modifications are now “permanent” – up from 389 thousand last month – and 617 thousand trial modifications have been cancelled – up sharply from 521 thousand last month.
•Another large number of trial programs were cancelled. This will mean more foreclosures (or short sales) in the near future.
•A large number of borrowers are still in modification limbo, so there will probably be more cancellations coming.
•The program is winding down quickly.
•The borrowers DTI characteristics are poor – suggesting a high redefault rate over the next year or two.