One of the major problems that lead to the recession and credit crunch was the accumulation of high risk borrowers and subsequent bad debt. Despite the cataclysmic results over this strategy, lenders could still be skewing the risk held on their mortgage books by failing to include figures on the number of mortgages agreements that have been changed to avoid repossession for the borrower.
Forbearance strategies from lenders are responsible for helping people work through their financial difficulties and still pay their mortgage back. These strategies include extending the mortgage term, changing a loan to interest-only and lowering the monthly repayment but these methods could be affecting the accuracy of the lenders’ company accounts.
