Industry News
October 16, 2012
Eminent Domain Bill Introduced in Congress
Rep. John Campbell, R-Calif., introduced legislation to stop city and county governments from using eminent domain to seize mortgages. As highlighted in previous eNews articles, several local governments have proposed plans to condemn performing mortgage loans. Federal Agencies have questions the use of eminent domain to seize mortgages citing the negative affect on the mortgage market.
The bill would prohibit Fannie Mae and Freddie Mac from purchasing mortgage loans originating in counties where a municipality has seized a mortgage loan through the power of eminent domain within the previous 10 years. The Federal Housing Administration (FHA) would also be prohibited from guaranteeing mortgages originating in counties where a municipality has seized a mortgage loan through the power of eminent domain within the previous 10 years.
