Short sellers target Arbor Realty Trust due to potential defaults on its loan portfolio, but the company has been modifying loans and reducing delinquency rates effectively.
Arbor Realty Trust, the most heavily shorted property stock, utilizes loan modifications to lessen distress, reporting lower non-performing loans than without modifications.
Arbor's strategic 'extend and pretend' approach involves negotiation and modification of troubled mortgages, reducing non-performing loans significantly.
Short sellers face high costs and missed opportunities as Arbor Realty Trust maintains stability despite high short interest and potential delinquencies in its loan portfolio.
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