Micah Green, a partner in the firm’s Washington office, was quoted by The Hill newspaper on March 30, 2010, about his work with the Association of Mortgage Investors to stave off home foreclosures across the country.
The association’s message: Mortgage investors on Wall Street have the same interests as homeowners on Main Street. Washington needs to do more to push banks to modify loans and write down principal to reduce foreclosures.
The Hill documented how the association’s message is starting to resonate on Capital Hill.
“We happen to believe the needs of the homeowners are very interestingly aligned with the needs of the investors,” said Mr. Green, who helped the association launch last year. “Both find that they’re in a mortgage that they shouldn’t be in and don’t need to be in.”
Investors favor loan modifications because they can recoup a greater portion of their investment than if the loans headed to foreclosure.
The association supported the Obama administration’s decision last week to provide greater incentives for mortgage modifications and refinancings.
Mr. Green predicted that the Obama administration’s recent plan would provide greater incentive for mortgage modifications and refinancings.
“In my view, the program has a great deal of promise,” Mr. Green said. “We believe first lien investors will participate in the program. But it’s also incumbent on other lien holders and other creditors to participate.”