twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com 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 MortgageDaily.com.

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

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

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

Press Releases
Reports and announcements from MortgageDaily.com.

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

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/

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.



Federal Legislation Attacks Eminent Domain

Bill introduced in House by Rep. Campbell

Sept. 13, 2012

By MortgageDaily.com staff


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

Rep. John Campbell (R-Calif.) Thursday introduced the Defending American Taxpayers from Abusive Government Takings Act into the House.

The bill would prohibit Fannie Mae and Freddie Mac from guaranteeing or purchasing loans secured by residential properties that are in areas where loans are being seized using the power of eminent domain.

In addition, the proposed law would stop the Federal Housing Administration from insuring loans backed by properties in localities that adopt the strategy and not allow the Department of Veterans Affairs to guarantee impacted mortgages.

The San Bernardino County Board of Supervisors joined the cities of Ontario and Fontana in creating a joint powers authority to consider an eminent domain plan in June. The proposal from Mortgage Resolution Partners would have the local governments targeting negative-equity mortgages included in private-label MBS for seizure and loan modifications.

On his congressional website, Campbell says in one post that the eminent domain proposal "is banana republic-type stuff."

The legislator warns that the proposal would subdue investment in the mortgage market.

"The whole basis of commerce in the United States is that you make transactions, you make contracts under the law and that you can count on those laws as the contracts go forward," Campbell stated. "Here you're basically going to void them."

Campbell has the support of the Mortgage Bankers Association.

"While the problem of underwater borrowers continues to slow the housing recovery, using eminent domain to take those mortgages is not a responsible answer," said MBA President and Chief Executive Officer David H. Stevens in a statement. "Beyond the obvious legal issues of using eminent domain in such a radical way, the government seizing mortgages would set a precedent that will hurt those communities and borrowers it is most designed to help."

Stevens, who served as Federal Housing Commissioner in the Obama administration, explained that increasing legal uncertainty for mortgage lenders and investors will increase the cost of lending and curtail credit availability.

He cautions that in addition to increasing home financing costs, the use of the controversial tactic will cause "a spiraling effect of declining home values and threatening local economic recovery."

Millions of American's would be impacted from eminent domain, according to Stevens, because their investments including pension plans, 529 college savings accounts and 401(k) are tied up in MBS that would be affected from "cramming losses down" on current MBS holders.

"Congressman Campbell's bill, on top of limiting the future cost to taxpayers associated with the losses that would be incurred by Fannie Mae, Freddie Mac, FHA and the VA, sends a clear message to municipalities considering eminent domain -- if you do this, there will be consequences for your constituents, consequences that will severely impact not only potential home buyers and home owners, but the value of every home in your area," Stevens said in the statement.

California Lt. Gov. Gavin Newsom is trying to create consequences for members of the mortgage industry and federal agencies who try to thwart the eminent domain proposal. He is asking the U.S. Department of Justice to review the actions of the lending community.

next story

back to current headlines


Mortgage Backed Securities | MBS News | MBS Statistics
News about commercial and residential mortgage-backed securities. Stories about ratings actions and changes to servicer ratings. Studies and reports about the performance of securitizations and problem vintages and classes. Subprime, Alt-A, home equity and j u m b o analysis.


Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.


Real Estate News | Real Estate Statistics
Residential real estate news and coverage of how residential real estate impacts the mortgage industry and residential mortgage-backed securities.


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.



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


Logout forgot
password?

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

MBS

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