Under several of the proposed plans, a city or county would condemn and seize certain mortgages held in private-label securitizations under the power of eminent domain and refinance the seized mortgage through a government lending program. The idea has reportedly been considered in several cities; it was considered and rejected in San Bernardino County. 

On August 8, 2012, the Federal Housing Finance Agency (FHFA) published a notice explaining its concerns with a particular proposal from Mortgage Resolution Partners (MRP) and indicated that “action may be necessary to avoid a risk to the safe and sound operations of its regulated entities.” Congress has also expressed concern about the proposal, resulting in legislation from Rep. John Campbell (R-Calif.) that would prohibit Fannie Mae and Freddie Mac from purchasing, the Federal Housing Administration from insuring and the Department of Veterans Affairs from making, insuring or guaranteeing, a home mortgage loan that is secured by a residence located in a state or local authority has used the power of eminent domain to take a home mortgage.