twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

Political Mortgage News | Mortgage Laws
Mortgage people in politics. Political contributions by mortgage companies. Coverage of political support by lenders and executives. GSE lobbying and issues.

Eminent Domain Bill Re-introduced

Bill would stop GSEs, FHA and USDA from lending in impacted cities

July 22, 2013

By Mortgage Daily staff

Federal legislation that was introduced nearly a year ago to discourage local governments' attempts to seize negative-equity loans included in private-label residential mortgage-backed securities has been reintroduced.

The Defending American Taxpayers from Abusive Government Takings Act was originally introduced in the U.S. House of Representatives in September 2012.

The proposed law would amend the charters of Fannie Mae and Freddie Mac to prohibit them from guaranteeing or purchasing loans secured by residential properties located in areas where eminent domain has been used to seize mortgages during the prior 10 years. Fannie and Freddie both hold private-label RMBS in their investment portfolios.

It would also amend the National Housing Act to prevent the Federal Housing Administration from insuring such loans and prohibit the U.S. Department of Agriculture from making loans in such areas.

Rep. John Campbell (R-Calif.), who originally introduced the bill, said last week that he has reintroduced the legislation.

Campbell said the bill would "stop reckless city and county governments from enacting profiteering schemes that seek to cash in on the plight of underwater homeowners through the arbitrary seizure of private home loans."

The lawmaker explained that overleveraged local governments are considering plans that would override property rights to use federal taxpayer dollars to seize distressed home loans in order to fund unconventional loan modifications.

Campbell noted that American taxpayers would fund the scheme, which would additionally profit Mortgage Resolution Partners -- the company peddling the proposal.

"These schemes pose a critical threat to recovery of the housing sector as lenders and investors that a sustainable housing finance system rely on would not have any faith in the durability of contracts," Campbell said in a news release. "Moreover, the savers and retirees who own these mortgages, many of them through their pension funds and 401(k) accounts, would be exposed to serious losses."

The congressman warned that such programs would be subject to corruption by cities that are motivated to appraise to property as low as possible in order to maximize their own profits. In addition, private lending would be wiped out in such localities.

The bill awaits the House Committee on Financial Services' consideration.

Mortgage Bankers Association President and Chief Executive Officer David H. Stevens issued a statement applauding Campbell.

"Using eminent domain to seize mortgages will result in tighter, more expensive credit for potential home buyers and those looking to refinance, driving down home values and threatening local economic recovery," Stevens stated. "Further, cramming losses down on existing mortgage backed securities holders will drive down the value of millions of Americans' investments, including pension plans, mutual funds and 401(k) retirement accounts."

Federal Legislation Attacks Eminent Domain (Sept. 13, 2012)

Federal legislation has been introduced that would eliminate government and agency financing in housing markets where local municipalities use eminent domain to seize mortgages.

next story

back to current headlines

Loan Modification News
Loan modification activity, reports and legislation.

GSE News | Fannie/Freddie Share Statistics
Fannie, Freddie and FHLB news. Coverage of government sponsored enterprise regulation, operations and litigation.

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders