AMI Comments on the 50 State Attorneys General Investigation Surrounding Foreclosures and Mortgage Industry Servicers
For immediate release
Wednesday, October 14, 2010
AMI Comments on the 50 State Attorneys General
Investigation Surrounding Foreclosures and Mortgage Industry Servicers
Washington, D.C. – The Association of Mortgage Investors (AMI) supports the state Attorneys General investigating the allegations surrounding servicer and mortgage industry foreclosure practices, but cautions against hasty action to assign liability or settle allegations surrounding foreclosure paperwork and processing. A variety of mortgage industry practices must be reformed. Any potential legal settlement must ensure that the responsible parties are actually held legally accountable.
“A hasty and ill-formulated legal settlement may harm the investors of mortgage-backed securities (MBS), namely retirees, municipalities, government entities, state pension funds, retirement systems, universities, and charitable endowments. It is important that any legal settlement require large banks and servicers to accept the legal responsibility for their actions. Taxpayers, policemen, firemen, teachers, and civil servants must not lose out in the haste for a settlement for settlement’s sake,” cautioned Chris Katopis, Executive Director of the Association of Mortgage Investors. “The best legal solution requires the responsible parties to repurchase defective mortgages when these defects are identified, as they are legally required under the trust agreements. Accordingly, all parties must enforce the contractual obligations requiring trustees and servicers to reimburse the trust for losses incurred due to breaches of representations and warranties.” . . .
For the complete press release, please click here: AMI_Press_Release_10-14-10