The Association of Mortgage Investors (AMI) reacted to Thursday's news that foreclosures hit record highs by commenting that this was an indication that the causes of homeowner defaults aren't being addressed.
In a statement, the organization said: Any solution will be incomplete if it does not give homeowners a way to reduce debt payments on all of their obligations, including not just mortgages, but other kinds of loans and credit card payments as well.
• All modifications should include the requirement for income verification.
• Second liens and other loans should be aggressively modified.
- Servicer conflicts must be addressed.
• Debt to income ratios must be examined and adjusted for all borrowers.
• AIM supports reducing principal for underwater home owners, but the program must be clearly defined.