FOR IMMEDIATE RELEASE - Association of Mortgage Investors

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FOR IMMEDIATE RELEASE - Association of Mortgage Investors Powered By Docstoc
					FOR IMMEDIATE RELEASE                                        CONTACT: Julie Wood
June 2, 2010                                                 Office: 212-260-8813 ext.247
                                                             Cell: 917-282-5840


NEW YORK, NY – Chris Katopis, Executive Director of the Association of Mortgage
Investors, today released the following statement in response to the Treasury
Department’s Supplemental Directive regarding the HAMP program (“SD”) {10-05}:

“We welcome Treasury’s latest HAMP Supplemental Directive. As the record number of
home foreclosures remains all too high, and relief under HAMP has been slow to date,
these program enhancements will build on the current framework in place to help
responsible Americans trying to stay in their homes. We welcome the announced HAMP
enhancements, particularly the principal write down alternative, which will make
principal forgiveness a priority in the HAMP waterfall, replacing forbearance. The
changes will ensure that where a first mortgage is written down under HAMP, the
corresponding second mortgage is required to be written down proportionally, in contrast
to some of the servicer practices that have obstructed mortgage modifications and
homeowner relief.

We look forward to continuing to work with the Administration and Congress on
additional solutions to the nation’s housing finance problems, which should include a
renewed focus on permanent principal reduction and refinancing of qualified
homeowners into a new FHA-insured fixed rate 30-year mortgage. Mortgage investors
support the fully underwritten and documented programs being developed by FHA to
provide permanent relief to millions of at risk American homeowners and believe a
refinance with principal forgiveness provides the highest and best returns for our clients.
AMI believes that providing a strong incentive, like principal reduction and a permanent
refinance to a lower mortgage balance, will encourage responsible homeownership and
prevent strategic defaults, a recent phenomenon that threatens the entire economy.”


The Association of Mortgage Investors represents private investors, public and private
pension funds, and endowments, all of whom support the efforts of Congress and the
Administration to help responsible, though distressed homeowners avoid foreclosure.