Freddie Mac weighs options if city uses eminent domain plan

08/7/2013 | Reuters · Housing Wire

Freddie Mac is considering suing Richmond, Calif., if it uses the right of eminent domain to seize troubled residential mortgages in an effort to help the city’s housing market. The city recently sent notices to holders of more than 600 underwater home mortgages offering to buy the loans. "Our sense is that those so-called voluntarily loan sales would not be very voluntary," Freddie Mac's general counsel William McDavid said in a conference call with reporters to discuss the company's second-quarter financial results. "They're loan sales under pressure -- in fact, under a threat of seizure by eminent domain. We would consider taking legal action."

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