Ballard Spahr: FHFA Questions Use of Eminent Domain for Underwater Mortgages

by the Consumer Financial Services Group In response to threats from local governments in California and elsewhere to use eminent domain to acquire and restructure underwater mortgages, the Federal Housing Finance Agency (FHFA) has announced that it "has determined that action may be necessary...

California City Adopts Plan To Seize 'Underwater' Mortgages

Last week, the city council of Richmond in California's San Francisco Bay area voted 4 to 3 to adopt a plan crafted by Mortgage Resolution Partners that will allow the city to acquire mortgages with negative equity in an effort to revive the city's struggling housing market. The city will now...