Richmond, Calif., is moving ahead with a plan to use eminent domain to seize underwater mortgages in an effort to help the housing market. El Monte and other municipalities in the state also are looking at the idea. Timothy Cameron, a managing director at SIFMA, said the plan would nullify valid contracts and make loans in jurisdictions that adopt the strategy more expensive. Cameron also warned that the plan would harm communities financially as well as endowments, pensioners, individual investors and others who had invested in private-label mortgage securities targeted by the plan. Learn more at SIFMA's Eminent Domain Resource Center.
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