Release Date: September 4, 2013
Contact: Katrina Cavalli, 212.313.1181, email@example.com
SIFMA Statement Following North Las Vegas Vote on Eminent Domain
New York, NY September 4, 2013—SIFMA today released the following statement from Timothy Cameron, managing director and head of SIFMA’s Asset Management Group, following a meeting of the North Las Vegas City Council. At the meeting, North Las Vegas voted unanimously not to pursue the use of eminent domain to refinance mortgages in the city.
“We are encouraged that North Las Vegas has decided it will not pursue the use of eminent domain to seize mortgages. SIFMA believes that this use of eminent domain is unconstitutional and harmful to American savers, and could hamper the housing market recovery both in North Las Vegas and around the country.
“Specifically, this misuse of eminent domain would harm the savings of everyday Americans who have money invested in mortgage-backed securities through their retirement funds and other investments. It would also introduce significant new risks into mortgage lending, which could raise borrowing costs and restrict credit availability at a time when our nation needs private capital to return to the housing markets.
“We are pleased that the City has recognized these risks and decided not to move forward with eminent domain. SIFMA hopes that the decision made today in North Las Vegas will be a signal to other municipalities across the country that the use of eminent domain to seize mortgages is not an effective solution and will do more harm than good."
For additional information:
SIFMA submitted an Amicus "Friend of the Court" Brief in Wells Fargo Bank v. City of Richmond, CA and Mortgage Resolution Partners:
SIFMA Eminent Domain Resource Center: http://www.sifma.org/issues/capital-markets/securitization/eminent-domain/overview/
The Securities Industry and Financial Markets Association (SIFMA) brings together the shared interests of hundreds of securities firms, banks and asset managers. SIFMA's mission is to support a strong financial industry, investor opportunity, capital formation, job creation and economic growth, while building trust and confidence in the financial markets. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.