Re-Default Redoux... The Debate Over Loan Mods is as Stupid as Ever.

TransUnion recently reported that after their loans were modified, only 40 percent of homeowners remained current on their mortgage payments 18 months later. The study made headlines by reporting that after 18 months, 59.1 percent of modified loans had re-defaulted, meaning they went 60 or more days past due, and within 12 months, 42 percent had gone 60 or more days past due.

Adding to the headlines, a report by the Office of the Special Inspector General for TARP, more commonly known as "SIGTARP," showed almost equally dismal performance for HAMP loan modifications.

In its April 24, 2013 Report to Congress, SIGTARP stated, among other things, "Of the 1.2 million HAMP participants, 306,000 have re-defaulted on their mortgages," and went on to say that an additional "88,000 homeowners have missed payments and are at risk of re-default."

The report puts the cost to taxpayers for the re-defaults to-date at an intended-to-be-infuriating, $815 million.''