SIFMA and 11 associations* provide comments to the US Congress strongly opposing proposals being consider by some U.S. municipalities to use a municipality’s eminent domain power to acquire performing but underwater mortgage loans held by private-label mortgage-backed securities (PLS) and then refinance the loans through programs administered by the Federal Housing Administration (FHA).  While the groups support a broad range of programs to assist struggling homeowners and the communities in which they reside, they are firm in our belief that using the power of eminent domain in this manner would harm our nation’s housing markets and the very communities it is intended to help.

*SIFMA signs this joint-trade letter with:

American Bankers Association (ABA)

American Council of Life Insurers (ACLI)

American Land Title Association (ALTA)

American Securitization Forum (AMF)

Association of Mortgage Investors (AMI)

Housing Policy Council (HPC)

Investment Company Institute (ICI)

Mortgage Bankers Association (MBA)

National Association of Home Builders (NAHB)

National Association of Realtors (NAR)

The Financial Services Roundtable (FSR)