Troubled home loans written before the mortgage crisis still haunt banks’ balance sheets, notwithstanding the sharp reductions they have made to loan-loss reserves.

Banks are continuing to restructure large numbers of residential mortgages because of stubbornly high unemployment and regulatory pressure to keep borrowers in their homes. A little-noticed charge taken by Regions Financial in the fourth quarter may portend that other banks will take similar losses on modified home loans, known as troubled debt restructurings.  

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry