While Obama´s administration is working hard to prevent foreclosures by leaning on loan modification, many fear that that wont be enough and is not resolving the main problem. According to a study done by the Boston Federal Reserve, the main cause for late payments, higher then that of huge interest rates, is unemployment. While high interest rates are a problem, the biggest problem borrowers are facing is not having a job to give them any money for a payment.

Boston´s Federal website reflected the results of the study, a line from their site being that "Foreclosure-prevention policy should focus on the most important source of defaults,". To really help prevent foreclosure, the administration needs to look at ways to help those who are or may be facing job loss. Economists on the site also wrote that "One of the most influential strands of thought contends that the crisis can be attenuated by changing the terms of 'unaffordable' mortgages,". Unaffordable mortgages is not those which necessarily have high rates, etc. The economists suggest that instead the government work to replace the homeowner´s loss of income with loans and grants, or a rent type situation if more suitable.

Working on job loss supplementing may also be more favorable to investors. Loan modification is not perhaps not the best solution for investors. Most investors are not very keen on loan modification as it means they have to take a cut, or the borrowers may later default again. The investors may have to take a loss now with modification and then a deeper one with the chance of a future default.