Banks tell Richmond loans aren't for sale as eminent domain threat looms

Richmond, Calif., recently inquired about buying more than 600 troubled mortgages and threatened to use eminent domain to seize the loans. However, the banks that provide customer service on the mortgages notified the city that the loans aren't for sale or that they don't "have the contractual authority to sell the loans." SIFMA has raised a variety of concerns about the idea of using eminent domain to seize mortgages. Investors "will become reluctant to put their capital at risk in communities that take such shortsighted actions," said SIFMA's Chris Killian. Learn more at SIFMA's Eminent Domain Resource Center.

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