SIFMA on NPR: Use of eminent domain will raise mortgage premiums

09/12/2013 | National Public Radio

A San Francisco federal judge Thursday heard arguments over a plan by the city of Richmond to stem foreclosures by offering investors deeply discounted rates to buy underwater mortgage securities and refinance them to help keep people in their homes. The city says it is ready to use eminent domain to take the mortgages if investors do not agree to sell. In this interview with NPR, Timothy Cameron, managing director of SIFMA's Asset Management Group, notes that the proposed plan is illegal, arguing that it will "be forcing private investors who allocate their resources to account for a risk that heretofore was unaccounted for. As a result, the premiums for mortgages will go up." Read SIFMA's statement on Judge Breyer's ruling in Richmond's eminent domain case.

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