Mortgage

Pomona California eyes eminent domain programs

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.  

Most Popular Articles

Housing inventory crisis continues in 2022

Want to know where housing demand is headed? Look at the MBA purchase application data from the second week of January to the first week of May.

Jan 12, 2022 By

Latest Articles

Here’s how one mortgage lender gives back to service members

About five years ago, NFM Lending was looking for a way to shift from sporadic donations to service members to a dedicated effort that regularly recognized their sacrifice. Their answer was the creation of the NFM Salute.

Jan 18, 2022 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please