FHFA Has 'Serious Concerns' About Eminent Domain Plan

Law360, New York (August 8, 2012, 5:06 PM EDT) -- The Federal Housing Finance Agency on Wednesday said it had “serious concerns” about proposals before several municipalities, most prominently San Bernardino County, Calif., to use eminent domain to seize and restructure underwater mortgages in a bid to ease the housing crisis.

The regulator, which oversees mortgage giants Fannie Mae, Freddie Mac and the Federal Home Loan Banks, said in a Federal Register notice it is worried the use of eminent domain to take over underwater mortgages would require contracts to be rewritten. FHFA also said such...
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