I have been an active proponent of such streamlined systematic approaches to reduce transactions costs and to help mitigate foreclosure risk, and I strongly encourage market participants to adopt and to implement these fast-track modification proposals as quickly as possible. The efforts by ASF and Hope Now have helped accelerate loan modifications in the last quarter, according to recently released data.
I applaud these efforts but more must be done as the number of households facing resets increases. Challenges remain, for example, with respect to ongoing constraints on servicing capacity to expedite work outs. Servicers must undertake the investment to overcome the capacity challenges and provide transparent and timely measures of the results. A systematic and prudent effort to avoid unnecessary foreclosures has many benefits.