Mortgage investors say they need more protection from further home price declines than the government is currently offering them in return for allowing loans to be modified.

The Obama administration's Home Affordable Modification Program, which pays incentive fees to servicers that rewrite loan terms, includes extra payments to investors that consent to modifications in declining housing markets. These payments, for as much as $5,000, are meant to compensate the investor for the risk that the borrower will end up defaulting again and the home will be foreclosed on and sold into an even more depressed market.

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