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

Loan Modification News
Loan modification activity, reports and legislation.

HUD Comments on Eminent Domain

Too early to determine FHA insurability on seized loans

Aug. 15, 2013

By Mortgage Daily staff

In a letter to lawmakers, the Department of Housing and Urban Development expressed concern about the use of eminent domain by local governments to seize performing loans held in residential mortgage-backed securities to reduce the outstanding balances. But the agency said it is too early to determine whether loans modified through the eminent domain process can be insured by the Federal Housing Administration.

Among the U.S. cities that are considering using the strategy are North Las Vegas, Nev., and the California towns of Pomona and Richmond.

Richmond, which is proceeding with the plan, has already begun sending letters to MBS investors making deeply discounted offers on hundreds of loans, many which are performing.

HUD's letter was addressed to three House Republicans from California -- Reps. Edward R. Royce, Gary G. Miller and John B. Campbell.

Miller's district includes Richmond.

The letter, which was signed by HUD Acting Assistant Secretary for Congressional and Intergovernmental Relations Elliot M. Mincberg, was written in response to a June 11 letter from the congressmen to HUD Secretary Shaun Donovan. The legislators had expressed concerns about how the scheme could harm the recovery as well as the growth of private capital in the mortgage market.

Mincberg highlighted prior HUD testimony about its concern over the proposed use of eminent domain by municipalities.

He said that the notion of using eminent domain to condemn and refinance mortgages raises "a number of potential and novel issues that state and local governments and the courts will have to consider and resolve." Those issues include the development of a condemnation and compensation plan that will survive legal scrutiny based on state laws, federal laws and legal precedent as well as political scrutiny

HUD acknowledged Richmond's progress and the subsequent investor lawsuits that have been filed.

The letter said that HUD doesn't know if a new mortgage created through the eminent domain process would be insurable by FHA.

"Moreover, until such plans produce concrete, analyzable results, HUD will not know what if any effects they will have on FHA and the mortgage market," the letter stated. "Any guidance from FHA on the issue should take into account these factors and should be narrowly tailored to avoid any unintended consequences."

HUD said that any response from FHA would best be delivered only after more information is available about the use of eminent domain.

Investors File Lawsuit Over Eminent Domain
A lawsuit filed on behalf of investors in private-label residential mortgage-backed securities has made its way to a federal court in California. Defendants include the company that has been peddling the use of eminent domain to seize performing loans and a California city that has already started offering discounted prices for securitized loans. The first batch of offers are discounted by as much as 89 percent of the current balances.

next story

back to current headlines

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.

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.

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.

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