Case Study: What Do I Do With These Loans?

Abstract

The author compares science-based loss mitigation strategies with existing bank loss mitigation practices in order to test the ability of science to improve the outcomes of losses mitigation. These outcomes are measured in a number of ways, two of which are economic (losses) and sociopolitical (keeping borrowers in their homes). The science used in this case is not the typical methodology that generates estimates (scores), which are then run through an if-then rules matrix.