For immediate release Contact: 202-327-8100 Tuesday, January 31, 2012

The Association of Mortgage Investors Cautions State Attorneys General: Dont 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. AMIs 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. The state Attorneys General, federal agencies, and certain mortgage servicers have worked for approximately one year on developing a solution to address our national foreclosure crisis. The time now may be nearing for a settlement of claims of alleged wrongdoing by servicers. AMI and mortgage investors have neither been involved in the negotiations nor are aware of the ultimate settlement terms. In anticipation of a possible settlement, however, AMI cautions these negotiators not to rush into a settlement, but rather work to get a properly constructed settlement that helps distressed homeowners with the right solutions. Investors in mortgage trusts, such as unions and pensions, do not service these loans and certainly did not create these woes for borrowers. The use of mortgage trust money (from pensions funds, unions and charities) to settle the investigation is tantamount to a bank bail-out. We expect that principal modifications of private mortgages made to satisfy any kind of settlement will involve only mortgages held by the settling parties and that the criteria for all additional principal modifications be firmly established, explained Chris Katopis, AMIs Executive Director. AMI would only support such a resulting settlement, if any, if appropriately designed to address such alleged wrongdoing while not implicating innocent parties. AMI is on-record as supporting 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 settlement should be designed in a way that ensures that investors, 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 should not receive 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. ### 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.