SIFMA and the SIFMA Asset Management Group provide comments to the Mayor and City Council Members of El Monte, California discouraging the use eminent domain to seize mortgage loans. The groups believe that the execution of these plans to use eminent domain will result in a serious contraction of credit availability, as lenders and secondary market sources of funding react with defensive, very stringent underwriting criteria.

El Monte City Councilmebers: Mayor Pro Tem Norma Macias, Councilman Juventino Gomez, Councilman Bart Patel, and Councilwoman Victoria Martinez each received identical comments.

The groups included a  Memorandum on Eminent Domain Proposals by O’Melveny & Myers, LLP.