Number of Modifications are misleading

In commentary published Wednesday, analysts at the research firm Barclays Capital took issue with the Treasury’s calculations of redefault rates, primarily because the numbers appear to be cooked to imply greater success since cancelled modifications – both trial and permanent – are not factored into the equation. This same point was brought up by a number of DSNews.com readers who also perused the data with a discerning eye.


“We find that the data as reported in this table are misleading and fail to capture the full magnitude of redefaults from these modifications,” Barclays said.

http://www.dsnews.com/articles/barclays-argues-treasury-report-on-hamp-redefaults-is-misleading-2010-07-21