July 16, 2009 - By Jody Shenn - Bloomberg
Mortgage-bond investors want more homeowners to be given aid that reduces the size of their debt below the value of their property, a Fortress Investment Group executive told Congress.
Banks controlling loan-modification decisions as servicers have blocked such relief because other types of changes to mortgage terms don’t require the banks to suffer losses on their holdings of home-equity loans, Curtis Glovier, a managing director at the New York-based asset manager said in prepared testimony to the Senate Banking Committee in Washington today.
“Investors are willing to do our part by making a significant sacrifice in reducing mortgage principal,” he said, speaking on behalf of the Mortgage Investors Coalition, a group formed in April that represents 11 firms with $200 billion of assets under management. more ...
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