FHFA Can't Block Calif. Mortgage Seizure Plan, Co. Says

Law360, New York (September 7, 2012, 7:22 PM EDT) -- The company pushing a plan for municipalities, most prominently San Bernardino County, Calif., to use eminent domain to seize and restructure underwater mortgages on Friday said that the Federal Housing Finance Agency had no jurisdiction to attempt to block its implementation.

Mortgage Resolution Partners said in a comment letter to the FHFA that although the agency, which oversees Fannie Mae and Freddie Mac, says it has serious concerns about the use of eminent domain to buy up underwater mortgages that are packaged in private-label securities, it...
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