S&P Updates Guidance On Eminent Domain Foreclosure

Law360, New York (August 27, 2013, 6:42 PM EDT) -- Standard and Poor's said Tuesday that a plan proposed by Richmond, Calif., and a mortgage company in July to seize home loans through eminent domain could have significant negative impacts on the mortgage-backed securities market. 

The credit ratings agency said the mortgage seizure program put forth by the city of Richmond and Mortgage Resolution Partners LLC might result in inconsistencies in solving the root cause of the nation’s housing problem, create unintended consequences for both investors and borrowers and inadvertently limit mortgage lending activity.

“The impact...
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