SIFMA objects to using eminent domain to seize mortgages

06/27/2012 | Bloomberg

SIFMA is raising concerns about municipalities' use of eminent domain to seize mortgages that have been packaged into bonds. In California, San Bernardino County and some cities are exploring the approach in an effort to help underwater homeowners. "We have very serious concerns and strong objection to the concept of using eminent domain to seize a mortgage for the purpose of restructuring it, no matter how meritorious the goal might be," said Ken Bentsen, SIFMA's executive vice president for public policy and advocacy. "We think it raises the serious constitutional issues of a government entity overstepping its bounds."

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