Fannie Mae: 3 reasons why this oil glut won't crash housing

The Wrap: Appraisal activity continues to pick up in second week of August

New this week: The Appraisal Foundation joins HW and looks at the challenges of green valuation

What should you do if your Realtor has a family emergency?

But you’re ready to make an offer now
W S
Servicing / The Ticker

Pomona California eyes eminent domain programs

underwater homeowner
/ Print / Reprints /
| Share More
/ Text Size+

The city of Pomona in California is deliberating how to solve its housing problems and is taking a closer look at use of eminent domain, the Mortgage Bankers Association said.   

The Mortgage Bankers Association wrote the city emphasizing the possible implications of utilizing eminent domain to seize underwater mortgages. 

“We believe that MRP’s proposal in particular raises very serious legal and constitutional issues, in addition to the threat it poses to the City’s housing market and economy,” the letter said.

“No jurisdiction has ever used eminent domain to acquire underwater mortgages from securitized pools. Such a novel use of the eminent domain powers is unprecedented and would, in our view, not survive the multiple legal challenges that would ensue,” the letter added.

While idea of using eminent domain has become quite common, most cities have backed off the strategy.  

Source: MBA
Read full story

Recent Articles by HousingWire Staff

Comments powered by Disqus