For immediate release

Contact: 202-327-8100

Friday, Oct. 1, 2010

AMI Calls on RMBS Trustees to Step Up to

Defend Pension and Retirement Investments

Washington, D.C. – Today, the Association of Mortgage Investors (AMI) called upon residential
mortgage-backed securities (RMBS) trustees to perform their fiduciary responsibilities and
protect millions of American pensioners and retirees, in the wake of reports about serious
irregularities in the processing of legal affidavits by the nation’s largest mortgage servicers.

Recent press reports detail how large mortgage servicers pursuing foreclosure actions have
given courts inadequate and legally defective affidavits. This deficient approach undermines the
integrity and the operational framework of the housing finance and mortgage system as it exists
today. In all cases where underlying loan files do not have the legal documents required under
RMBS pooling and servicing agreements (PSAs), servicers should immediately pursue the
repurchase of these loans by party that originated the loans. To the extent that RMBS trusts
were damaged by the defective operations of servicers, AMI calls on trustees to audit and
review the resulting losses to hold servicers accountable for negligence in maintaining the
assets of trusts. Trustees should publicly state to investors how they are responding to these
problems and protecting the trusts for which they are responsible.

The reports concerning Ally Financial and JP Morgan Chase allege that key officers of each
institution failed to verify critical borrower and property information which may lead to inaccurate
legal filings regarding the mortgages and the underlying properties. In the case of JPMorgan
Chase, 56,000 mortgages in at least 23 states are allegedly impacted. “The capacity
constraints at our nation’s largest servicers continue to be an issue of great concern to
investors. We urge Ally, JP Morgan Chase, and all other servicers to invest the time and
resources necessary to improve their operational infrastructure and to avoid situations where
efficient mortgage servicing and collection practices are compromised. Furthermore, investors
are deeply concerned about possible documentation inconsistencies related to mortgages that
banks are controlling. It is vital that trustees promptly address these matters,” explained Chris
Katopis, Executive Director of the Association of Mortgage Investors (AMI).

“We hope that servicers who operated in a manner inconsistent with generally accepted
industry practices, whether intentionally or unintentionally, will do the right thing and immediately
enforce any violations of representations and warranties in PSAs. The unfortunate and little-
known consequence of these operational breakdowns is the destruction of capital needed to
sustain fixed income investors reliant upon cash flow from pensions and retirement accounts,”
said Katopis.

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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.