Congressman Hensarling Tries to Tackle Eminent Domain Plans
Industry Update: On July 14, HousingWire published an article titled Congressman Tries to Tackle Eminent Domain Plans.
Congressman tries to tackle eminent domain plans
Mortgage Resolutions Partners may have secured an agreement to work with the city of North Las Vegas on a possible eminent domain plan to save underwater homeowners, but politicians back in Washington D.C. are already drafting legislation to stop future eminent domain proposals in their tracks.
Eminent domain plans first popped up in San Bernardino, Calif.
MRP, an advisory firm, contracted with the county and a few other municaplities to brainstorm solutions to prevent foreclosures and save distressed borrowers.
The most controversial plan suggests a local government can use the power of eminent domain to seize mortgages from securitized pools, allowing officials to then write down the principal amounts to help borrowers.
But Rep. Jeb Hensarling, R-Texas, is having none of it. The House Financial Services Committee Chairman inserted a provision in a draft of his proposed mortgage finance legislation to stop eminent domain. The proposal, if passed, would block federally backed loans in any county that allows eminent domain to be enacted.
The Las Vegas Review has more on Hensarling’s plan.
To view the online article, please click here.
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders, and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.