MMBA Joins in Asking Congress to Prevent Eminent Domain as Mortgage Fix
Industry Update: On July 26, the Boston Business Journal published an article titled Mass. Mortgage Bankers to Congress: Drop Eminent Domain as Mortgage Fix.
Mass. mortgage bankers to Congress: Drop eminent domain as mortgage fix
The Massachusetts Mortgage Bankers Association has joined about 20 other state associations and the national MBA in asking Congress to prevent towns from using eminent domain to seize troubled mortgages.
In a letter Wednesday, the associations demand that Congress bar the Federal Housing Administration, Fannie Mae and Freddie Mac from becoming part of the relatively new approach.
The practice the associations are so worried about was spawned by a San Francisco investment fund called Mortgage Resolution Partners. In it, towns working with MRP use eminent domain to seize current, but underwater mortgages held in mortgage-backed securities, refinance the loans through the FHA and sell them back to the homeowners.
Locally, the idea has gotten some traction in Brockton, which recently considered implementing the process.
The MMBA argues the practice “is undercutting the nations housing markets by lowering housing values.”
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.