Mulvaney Amendment to THUD

SIFMA and 14 other associations* provide a letter to the U.S. House of Representatives in support of the Mulvaney amendment to THUD.

The associations strongly support an amendment that may be offered to H.R. 2610, the Transportation and HUD Appropriations Act for Fiscal Year 2014, to prohibit the Federal Housing Administration (FHA) from insuring residential mortgages seized through eminent domain.

The amendment has become necessary because numerous communities across the country are considering a plan developed by a vulture fund that envisions using a municipality’s eminent domain power to acquire performing but underwater mortgage loans held in private-label mortgage-backed securities and then insure the new loans through the taxpayer-backed FHA.

*SIFMA signed this joint-trade letter with:

American Bankers Association

American Council of Life Insurers

American Land Title Association

American Securitization Forum

Association of Mortgage Investors

Credit Union National Association

Financial Services Roundtable

Housing Policy Council

Independent Community Bankers of America

Investment Company Institute

Mortgage Bankers Association

National Association of Federal Credit Unions

National Association of Home Builders

National Association of Realtors

Securities Industry and Financial Markets Association