San Bernardino County in California decided not to use eminent domain to stabilize the housing market by seizing homes underwater on their mortgages. The proposal by Mortgage Resolution Partners was opposed by the real estate and mortgage industries as well as the community at large. Therefore, the Joint Powers Authority formed by the county and the cities of Fontana and Ontario rejected the plan. "We are encouraged" by the rejection, Timothy Cameron, managing director and head of asset management at SIFMA, said in a statement. "The unprecedented, potential use of eminent domain would cause severe damage to struggling housing markets and is likely unconstitutional on its face." Read the full SIFMA statement.
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