In 2009, the mortgage industry and local, state and federal governments heightened their focus on home retention and on inviting new buyers into the market in the midst of rising unemployment. As we approach the close of 2010, we continue to focus on those same goals. However, with the industry's shift from loan origination to loss mitigation in recent years, we seem to have lost focus on a simple fact: The loss-mitigation methods leading the charge (e.g., loan modifications, repayment plans and short sales) are not new concepts; and although they are being used in the midst of extraordinary times, we must understand their purposes and limitations in order to use them effectively.
