The Federal Housing Finance Agency said it could prohibit Fannie Mae and Freddie Mac from doing business with jurisdictions considering using eminent domain to seize troubled mortgages. The agency has "serious concerns on the use of eminent domain to restructure existing financial contracts and has determined such use presents a clear threat to the safe and sound operations of Fannie Mae, Freddie Mac and the Federal Home Loan Banks," according to the FHFA.

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