Servicers of subprime residential adjustable-rate mortgage loans are seeing an increase in efforts to modify troubled loans, according to Moody's Investors Service survey. "Moody's found servicers had modified, as of the end of March 2008, 9.8% of the subprime ARMs with interest rate resets in the preceding 15 months," the ratings agency said. "In December, a similar survey found only 3.5% of resetting loans being modified," said Moody's. The survey included information from 10 servicers with a total servicing volume of approximately $550 billion, according to the ratings agency. Moody's said these servicers represent roughly 50% of the total U.S. subprime servicing market.
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