Efforts to streamline or standardize the loan modification process could lower transaction costs, provide timely relief for distressed borrowers, and reduce uncertainties in the market for subprime mortgage-backed securities. Industry and consumer groups are exploring loan modification templates, clarification of accounting rules, automated electronic platforms, and standards to streamline the loan modification process.
The Hope Now Alliance – a broadbased coalition of government-sponsored enterprises, industry trade associations, counseling agencies, and mortgage servicers – is making efforts to find ways to help borrowers through loan modification plans. 2  Randall S. Kroszner (1999), "Can the Financial Markets Privately Regulate Risk? The Development of Derivatives Clearing Houses and Recent Over-the-Counter Innovations", Journal of Money, Credit, and Banking, vol.