Eminent domain plan puts homeowners at odds with bondholders

08/1/2013 | Fox Business · Bloomberg · Housing Wire

A Richmond, Calif., plan to use eminent domain as a tool to reduce homeowner debt has far-reaching implications, which could include harming bondholders. SIFMA continues to raise concerns about the plan. "The action being taken by the city of Richmond will hurt many more homeowners both within the city and around the country than it is alleged to help. It will raise borrowing costs for numerous homebuyers and could end up restricting credit availability," said former Sen. Judd Gregg, CEO of SIFMA. In a Fox Business interview, Tim Cameron, managing director of SIFMA's Asset Management Group, makes a strong case for why eminent domain should not be used to take over underwater mortgages.

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Fox Business · Bloomberg · Housing Wire

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