AMI News and Resources

AMI News

AMI Commends Chairman Tom Marino and the House Judiciary Committee for Responsible Oversight over Defective DoJ Bank Settlements that Negatively Affect Average Americans, Unions, and Seniors

For immediate release

Contact: 202-327-8100

Thursday, February 12, 2015

The Association of Mortgage Investors (AMI) Commends Chairman Tom Marino and the House Judiciary Committee for Responsible Oversight over Defective DoJ Bank Settlements that Negatively Affect Average Americans, Unions, and Seniors

     The Association of Mortgage Investors (AMI) commends House Judiciary Subcommittee Chairman Tom Marino (R-PA) and the House Judiciary Committee for its responsible oversight regarding the defective U.S. Department of Justice bank settlements that negatively affect average Americans, unions, and seniors.

AMI represents the managers of mutual funds and long-term investors for state and local pension and retirement funds for a range of public institutions, including unions, teachers, and first-responders.  AMI members are fiduciaries for their clients.  In that capacity, it is incumbent upon them to review any and all situations that would impact their clients’ investments, such as the recent settlements.

On Thursday, the House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law holds a hearing examining a number of issues, including the bank-servicer settlements.  AMI and its members have long been critical of these settlements.  AMI Board President Vincent A. Fiorillo noted, “The objective of any settlement should be to advance the public interest and to help responsible consumers who may have gotten into trouble, not creating deceptive big dollar headlines for political gain.”

In recent years, a number of settlements with the Justice Department and state Attorneys General have resulted in the responsible party shifting a portion of the settlement costs to RMBS investors.   Yet, it is antithetical, if not patently unfair, for any institution to pass its penalty to another party, such as certificate holders such as seniors and 401K savers.  These precedents are very troubling for investors and their impact on the general public.  These are not unforeseen consequences, but rather an obvious scheme by bank-servicers to evade liability for their misconduct by further abusing their duties to investors.  This affects our clients, and in turn the general public, whom are “Main Street.”

AMI has been on-the-record as supporting a settlement of claims against the mortgage servicers, provided that it does not harm average Americans and their 401Ks.   This means that any settlement must be appropriately designed to address such alleged wrongdoing while not settling with the money of innocent parties. The retirement security of these innocent parties will likely be impacted by this settlement as it is currently filed. The settlement was negotiated among the state Attorneys General, the federal government, and certain mortgage servicers.  On behalf of the public interest, AMI asks that any future settlements focus on directly helping responsible consumers, not “short changing” them.

AMI supports long-term, effective, sustainable solutions to the housing foreclosure crisis.  It is generally supportive of a settlement if it ensures that responsible borrowers are treated fairly throughout the foreclosure process; while at the same time providing clarity as to investor rights and servicer responsibilities.  The ultimate settlement should ensure that our clients, who were not involved in the alleged activities and, who likewise were not a participant in any negotiations, do not bear the cost of the settlement.  Specifically, mortgage servicers, if at all, should only receive limited, reasonable credit for modifying mortgages held by third parties, which are often pension plans, 401K plans, endowments and “Main Street” mutual funds.  To do otherwise, will damage the RMBS markets further and limit the ability of average Americans to obtain credit for homes for generations to come.

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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. For more information, visit www.the-ami.org.

The AMI is now live on Twitter with the most recent news on mortgage investing. Follow us: @MortgageInvest. 

AMI Board President Vincent Fiorillo on CNBC’s Santelli Exchange

AMI Board President Vincent A. Fiorillo of Doubleline Capital recently appeared on CBNC’s Santelli Exchange discussing eminent domain, housing, and likely market trends.

 

http://video.cnbc.com/gallery/?video=3000227836

The Riverside Press-Enterprise Editorial Condemns JPA Eminent Domain Plan

http://www.pe.com/opinion/editorials-headlines/20120722-inland-mortgage-morass.ece

AMI notes GMU Prof. Anthony Sanders on Eminent Domain Harming the Public, Investors

AMI invites your attention to the following recent article by the eminent George Mason University Distinguished Professor of Estate Finance Professor Anthony Sanders.

In it, he calls the proposed San Bernardino eminent domain condemnation idea a “disgrace.”

http://confoundedinterest.wordpress.com/2012/06/25/yet-another-loan-mod-program-municipal-condemnation-for-mortgage-principal-writedowns/

The MBS Investor’s Case Against the Mortgage Settlement

AMI’s concerns about the National Mortgage Settlement are discussed in the following Real Clear Markets article.

March 22, 2012

The MBS Investor’s Case Against the Mortgage Settlement

By Anthony Randazzo

Mortgage-backed securities investors are starting to boil over with righteous indignation after details on the $25 billion national mortgage settlement emerged last week.  The settlement confirmed that they might have to forfeit $17-$20 billion to pay for most of the deal. As was long suspected (and covered in this space on Feb 23, 2012 in “A Highly Unjust Mortgage Settlement”), the headline figure of banks paying $25 billion for their robo-signing of foreclosure documents is bogus, and banks may only wind up paying $5 billion in cash of the overall deal. . . .

For the entire article, please click the following link:

http://www.realclearmarkets.com/articles/2012/03/22/the_mbs_investors_case_against_the_mortgage_settlement_99576.html

Press Release: AMI Cautions State AGs Don’t Rush a Settlement; Get It Right

For immediate release

Contact: 202-327-8100

Tuesday, January 31, 2012

 

The Association of Mortgage Investors Cautions State Attorneys General: Don’t Rush a Settlement; Get It Right

The Association of Mortgage Investors (AMI) issued the following statement concerning the state Attorneys General, the federal government, and certain mortgage servicers possibly nearing a settlement of claims.  AMI’s members manage tens of billions in mortgage assets (bonds) for state and local pension and retirement funds for a range of public institutions on a daily basis . . .

For the full text of the release please click here: AMI_press_release_1_31_2012

AMI Testifies at House Financial Services Subcommittee NYC Field Hearing

Sept. 7, 2011.

AMI will testify at the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises.

Hearing on : “Facilitating Continued Investor Demand in the U.S. Mortgage Market Without a Government Guarantee”.

Please click the link for AMI’s written statement:

AMI House Fin Svs GSE Subcommittee Written Statement Sept 7 2011


AMI Testifies before U.S. Senate Banking Subcommittee

For immediate release

Contact: 202-327-8100

Wednesday, May 18, 2011

AMI Testifies before U.S. Senate Banking Subcommittee;

Calls for Enhancing Securitization through Greater Transparency, Standardization, Loan Level Data, and Model Pooling and Servicing Agreements (PSAs)

 

Washington, D.C. – The Association of Mortgage Investors (AMI) welcomes the opportunity to testify before the U.S. Senate Banking Subcommittee on Securities, Insurance and Investment hearing on “The State of the Securitization Markets.”  In its congressional statement, AMI calls for a number of capital market reforms, to address the following defects of the current system, including, market opacity, an asymmetry of information, and a thorough a lack of transparency; poor underwriting standards; a lack of standardization and uniformity concerning the transaction documents; numerous conflicts-of-interest among servicers and their affiliates; antiquated, defective, and improper mortgage servicing practices; and, investors lack effective legal remedies for violations of RMBS contractual obligations and other rights arising under state and federal law if representations regarding those facts turn out to be untrue.

For more, please click here AMI_press_release_5-18-2011

AMI’s congressional hearing statement is available by clicking here AMI_Sen_Banking_SII_Subcomm_Statement_May_18_2011

AMI Urges Attorneys General and CFPB, Don’t Bail Out the Banks Again

 

AMI Urges Attorneys General and CFPB, Don’t Bail Out the Banks Again,

Middle-Class America and the Pensions Must Not Bear the Settlement Costs

Washington, D.C. – This week in Washington, D.C., key parties met for face-to-face settlement negotiations surrounding the mortgage servicing and foreclosure investigation into alleged misconduct, such as robosigning. The Association of Mortgage Investors (AMI) urges all state and federal parties to the ongoing investigation to protect the rights and investments of   investors so that the final settlement only penalizes the servicers who have acted irresponsibly, acted to the detriment of borrowers and pension funds, and does not result in another government bank bailout.

Please click the following linl for our most recent press release:

AMI_press_release_3_31_2011

New York Times on the Mortgage Mess

This editorial nicely summarizes some of the issues surrounding our current mortgage mess.

Click here for the complete editorial:  NY Times Mortgage Mess Oct 31 2010