A growing literature suggests that housing policy, embodied by the Community Reinvestment Act (CRA) and government sponsored enterprises' affordable housing goals, may have caused the subprime crisis. The conclusions drawn in this literature, for the most part, have been based on associations...

This paper examines changes in the redefault rate of mortgages that were selected for modification during 2008–2011, compared with that of similarly situated self-cured mortgages during the same period. We find that while the performance of both modified and self-cured loans improved...