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Economics Seminar Series- Thomas Herndon

Tuesday, March 6, 2018 at 4:00 pm to 6:00 pm

Room D1009, Albert and Vera List Academic Center 6 East 16th Street, 10th Floor, New York, NY 10011

Professor Thomas Herndon from Loyola Marymount University will present his latest paper "Punishment or Forgiveness? Loan modifications in private label residential mortgaged backed securities from 2008-2014". 

Abstract: "I estimate the extent to which modifications of privately securitized mortgages increased or forgave debt during the Great Recession and aftermath, from 2008-2014. I find that loan modifications weakened house-hold balance sheets by adding $20 billion to household debt, with the net amount of debt added per modification doubling from 2010-2014. I also and that the increase in debt is consistent with capitalization of fees, but not missed interest payments. Capitalization of fees is significant because it has been associated with a principal-agent problem between investors and mortgage servicers preventing efficient loss mitigation, as well as consumer financial protection abuses."

Hosted by the NSSR/Economics Department, the seminar series features lectures, paper and book presentations from prominent Economists.

Event Type

Lectures and Panel Discussions


Students, Faculty, Staff


The New School for Social Research, Department of Economics





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By Train:
The 4, 5, 6, N, R, Q and L to 14th St./Union Square.
The A, C and E to 14th St. and 8th Ave.
The 1, 2 and 3 to 14th St. and 7th Ave.
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PATH train to 14th St. and 6th Ave.