The Association of Mortgage Investors (AMI) is calling for the use of "specialty servicers" to modify and write down delinquent single-family loans, second mortgages, and other consumer debt.

The trade group, which represents investors in private-label MBS, believes regular servicers have numerous conflicts of interest due to their ownership in second liens, credit card, and auto loans. Because banks carry these other consumer loans on their books, it makes them reluctant to participate in the modification/restructuring process of first mortgages, AMI argues.

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