DCSIMG

MBA's Resource Center on Eminent Domain Use for Mortgage Property Seizures


State and local governments must not attempt to apply eminent domain laws as a way to refinance underwater mortgages in their communities. MBA agrees wholeheartedly with the Federal Housing Finance Authority (FHFA) that "utilizing eminent domain in this way could undermine and have a chilling effect on the extension of credit" to prospective homeowners. Existing, underutilized housing programs are better tailored toward helping distressed homeowners, and policy-makers should encourage and reinforce them.



Key Resources

MBA Eminent Domain Issue Brief

MBA Comment Letter to FHFA on Eminent Domain Proposal

Seventy-Five Comment Letters Received by FHFA on Eminent Domain Proposal

Coalition Comment Letter to FHFA on Eminent Domain Proposal



Latest Developments:

July 8, 2014: San Francisco Board of Supervisors Sends Eminent Domain Resolution to Committee for Further Consideration, Preventing the Immediate Board-Level Vote Sought by its Sponsor

July 6, 2014: Contra Costa Times, "Richmond Misses its Chance to Turn the Page on Mortgage-Seizing Plan"

July 2, 2014: MBA CEO and President David H. Stevens Responds to Op-Ed in New York Daily News, "Seize the Loans of Belly-Up Homes"

June 25, 2014: Group of New York City Council Members Express Interest in Eminent Domain Mortgage Seizure Proposal

June 24, 2014:
MBA and CMBA Write Letter to San Francisco's Board of Supervisors, Opposing the Avalos Eminent Domain Resolution


June 24, 2014:
San Francisco Supervisor Avalos Introduces Eminent Domain Resolution before Board of Supervisors, Seeking to Enter the City into a Joint Powers Authority Agreement with Richmond, California as a First Step

May 6, 2014:
U.S. House Appropriations Committee Includes Language in T-HUD FY 2015 Appropriations Bill that would Prohibit FHA, HUD or Ginnie Mae from using Funds to Make, Insure or Guarantee Mortgages Acquired through Eminent Domain

March 26, 2014: Preliminary Report Commissioned by Seattle City Council Recommends Rejection of Eminent Domain Mortgage Seizure Proposal

February 12, 2014: American Land Title Association States that Guidance Needed from HUD on the Eminent Domain Mortgage Seizure Proposal in Order to Provide Certainty for Mortgage Market

January 22, 2014: Administration Official Emphasizes in Speech that Better Alternatives Exist for Homeowners than Eminent Domain Mortgage Seizure Proposal

December 9, 2013: Seattle MBA and Washington MLA Lead Local Industry Coalition Letter to Seattle City Council Warning of Dangers from Eminent Domain Mortgage Seizure Proposal

November 27, 2013: Bipartisan Group of Senators Send Letter to HUD and Treasury Urging HUD to Prohibit FHA from Insuring Mortgages Seized Through Eminent Domain

November 5, 2013: Mortgage Bankers Association, "Eminent Domain Battle Shifts to Another California City"

October 30, 2013: MBA and California MBA Send Joint Letter to Pomona, CA Urging them to Abandon Consideration of Eminent Domain Mortgage Seizure Proposal

October 24, 2013: Urban Institute, "Eminent Domain: The Debate Distracts from Pressing Problems"

September 30, 2013: Reuters, "Calpers Concerned about Richmond, Calif.'s Mortgage Plan"

September 20, 2013: Reuters, "Moody's Concerned by Richmond, California's Plan for Mortgages"

September 16, 2013: Wells Fargo Bank v. City of Richmond Dismissed on Procedural Grounds, But May be Re-Filed if Richmond, CA Gives Final Approval for Eminent Domain Mortgage Seizures

September 11, 2013: American Land Title Association Critical of Eminent Domain Mortgage Seizure Proposal in Statement

September 11, 2013: Seattle City Council Hears Presentation on Eminent Domain Mortgage Seizure Proposal

September 10, 2013: San Francisco Supervisor Proposes Board Resolution to Support Richmond, CA and Commission Study on Eminent Domain Plan

September 4, 2013: Nevada's North Las Vegas City Council Abandons Eminent Domain Mortgage Proposal

September 1, 2013: Inside Bay Area, "Richmond Eminent Domain Plan is Dangerous"

August 12, 2013: HUD Responds to Letter from Members of Congress Asking for Clarification on HUD's Policy Regarding Mortgage Seizures Through Eminent Domain

August 8, 2013: MBA President and CEO David H. Stevens Files Affidavit in Support of Mortgage-Bond Trustees in their Eminent Domain Lawsuit, Wells Fargo Bank v. City of Richmond

August 8, 2013: Mortgage-Bond Trustees Submit Motion for Preliminary Injunction in Lawsuit against Richmond, CA and Mortgage Resolution Partners

August 8, 2013: FHFA Issues Statement and General Counsel Memorandum Addressing Concerns with Eminent Domain Mortgage Seizure Proposal and Potential Consequences if Implemented

August 7, 2013: Mortgage-Bond Trustees File Lawsuit against Richmond, CA and Mortgage Resolution Partners to Stop the City's Plan to Utilize Eminent Domain to Seize Mortgages; Separate Lawsuit Also Filed by Different Trustee

July 24, 2013: MBA and a Coalition of State and Local MBAs Send Joint Letter to Congress Expressing Opposition for Proposal Seeking to Seize Mortgages Through Eminent Domain

July 22, 2013: MBA and a National Coalition of Trade Associations Send Joint Letter to Congress Expressing Opposition for Eminent Domain Mortgage Seizure Proposal

June 28, 2013: Lawsuit Filed in Nevada Seeks to Enjoin Use of Eminent Domain to Acquire Mortgage Loans

June 12, 2013: MBA President and CEO David H. Stevens, "Why Eminent Domain Is Simply Wrong"

June 11, 2013: Members of Congress Request Written Confirmation of HUD's Policy on Eminent Domain Mortgage Seizure Plan's Proposed Use of FHA

June 11, 2013: The Wall Street Journal, "The Fed's Eminent Mistake"

May 30, 2013: Contra Costa Times Editorial, "Richmond's Mortgage Seizure Plan Not Ready for Prime Time"

May 9, 2013: MBA and Coalition Partners Ask California's El Monte, Pomona, Orange Cove, La Puente, and San Joaquin to End Consideration of Eminent Domain Proposal

April 11, 2013: Brockton, Massachusetts Working Group Abandons Consideration of Eminent Domain Mortgage Seizure Proposal

April 2, 2013: Richmond, California City Council Approves "Advisory Services Agreement" for Advice on Mortgage Acquisition Process Through Eminent Domain

March 6, 2013: North Las Vegas City Council Hears Presentation on Eminent Domain Proposal

February 26, 2013: Richmond, California City Council Considers Eminent Domain Presentation and Decides to Study/Further Develop the Proposal

February 20, 2013: Brockton, Massachusetts Working Group on Eminent Domain Holds Meeting

January 24, 2013: California's San Bernardino County JPA Abandons Eminent Domain Mortgage Proposal

January 16, 2013: Politico, "Still no partner for radical mortgage resolution"

January 7, 2013: The Finance Committee of the Brockton, Massachusetts City Council Decides to Form Working Group to Evaluate Eminent Domain Proposal

December 17, 2012: Brockton, Massachusetts' City Council Considers Eminent Domain Plan Before its Standing Committee on Finance

December 11, 2012: Housing Subcommittee Staff Recommend Consideration of Eminent Domain Plan to Salinas, California's City Council Members

November 20, 2012: Wayne County, MI discusses potential use of eminent domain for underwater mortgages, but Michigan State law may prohibit this action

October 22, 2012: California's San Bernardino County, Ontario, and Fontana Cancel October JPA Meeting on Eminent Domain Proposal

October 8, 2012: Standard & Poor's, "Assessing the Potential Impact of Eminent Domain on Private-Label RMBS" (Subscription Needed)

October 1, 2012: Sacramento, CA Vice Mayor Ashby Reportedly Considering Eminent Domain Use for Underwater Mortgages

September 18, 2012: Councilmember Alarcon's Motion and Press Statement Requesting Consideration of Eminent Domain Proposal for the City of Los Angeles

September 13, 2012: MBA Endorses U.S. Rep. Campbell's (R-CA) "Defending American Taxpayers from Abusive Government Takings Act"

September 10, 2012: California Lt. Governor Newsom Calls for U.S. Justice Department Investigation of Eminent Domain Proposal Opposition

August 27, 2012: San Bernardino County Supervisor Rutherford Opposes Eminent Domain Plan

August 14, 2012: Chicago Mayor Emanuel Speaks Out Against Eminent Domain Use

August 14, 2012: Joint Committee of Chicago's City Council Approves Further Consideration of Eminent Domain Plan

August 9, 2012: FHFA Press Release and Federal Register Notice on Eminent Domain Plan

July 31, 2012: Berkeley City Council Recommends Eminent Domain Resolution proposed by Councilmember Worthington

July 25, 2012: Chicago City Council Aldermen Burke and Austin Call for Hearing on Eminent Domain Proposal in Resolution

July 16, 2012: Wall Street Journal, "White House Skeptical of Plan to Seize Mortgages by Eminent Domain"

July 16, 2012: New York Post, "Even White House, Geithner Reject Eminent Domain for Mortgages Nonsense"

June 19, 2012: San Bernardino County, Ontario, and Fontana Form Joint Exercise of Powers Agreement (JPA) for Eminent Domain Proposal in California

January 31, 2012: Arizona Introduces Eminent Domain Legislation for Underwater Mortgages