FDIC Loan Modifications: Almost Half Had Life of Loan Reductions >10%; But 1/4 Were Not Fully Amortizing.

I extracted FDIC IndyMac reported loan modification data from recent Congressional Oversight Panel report I previously posted about HERE.

The table I constructed HERE shows the results of more than 7,400 FDIC loan modifications as of Dec. 31, 2008. As the table shows:

• 94% of Loan Mods Had a Lower Payment for Life of Loan.
• 45% Had Payments Reduced by 10% or More for the Life of the Loan.
• Another 24% Had Payments Reduced by 10% or More for first 5 Years.
• 24% Were NOT Fully Amortizing (likely with balloon payment).

Note: A later chart indicates in the source document (p.186) indicates that 5,440 (73%) of the loan modifications had an interest rate reduction.