Commentary: City's eminent domain scheme has many problems

09/9/2013 | Forbes

Marc Joffe, principal consultant at Public Sector Credit Solutions, explains the many issues related to a plan by Richmond, Calif., to use eminent domain to seize certain mortgages. Joffe writes that many of the mortgages included in the plan are current, some of the homes are in affluent areas where concerns about neighborhood blight are not relevant and that the scheme would hurt investors in residential mortgage-backed securities. Also, moving forward with the plan could "set an important legal precedent extending the power of eminent domain," Joffe writes. Learn more at SIFMA's Eminent Domain Resource Center.

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