*Letters

The Use of Eminent Domain to Restructure Performing Loans

Published on:
August 27, 2012
Committees:

SIFMA provides comments to the Federal Deposit Insurance Corporation (FDIC) on the use of eminent domain to restructure performing loans.  SIFMA shares grave concerns about proposals advocating for the use of eminent domain to seize individual underwater mortgages from established private-label securitized pools. SIFMA cautions the FDIC that these proposals would fundamentally call into question the reliability of the mortgage contract and have permanent, negative consequences for the national housing finance system.

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