Underwater Mortgages Deserve More Than Eminent Domain
June 6, 2013, 11:22 AM EDT
Law360, New York (June 6, 2013, 11:22 AM EDT) -- A number of industry groups raised concerns recently when Mortgage Resolution Partners (MRP) entered into contracts with two additional municipalities to formalize the use of eminent domain programs to seize or restructure underwater residential mortgages, which are often part of securitization trusts. In response to these actions, the industry groups sent joint letters to these municipalities outlining their concerns.
The discussion of the use of eminent domain to seize underwater residential mortgages began last summer when several California municipalities began discussing the potential use of...