Executives form a number of companies including Investment Company Institute (ICI
), have banded together to beg U.S communities not to enter into agreement with the investment fund Mortgage Resolution Partners
, and sent a letter to Congress protesting the use of eminent domain power to acquire "performing but underwater mortgage loans held by private-label mortgage backed securities and then refinance the loans through programs administered by the Federal Housing Administration."
Representatives from Securities Industry and Financial Markets Association
(SIFMA); American Bankers Association
; American Council of Life Insurers
(ACLI); American Land Title Association
; American Securitization Forum Association of Mortgage Investors
; Housing Policy Council
; Investment Company Institute
; Mortgage Bankers Association
; National Association of Home Builders
; National Association of Realtors
, and the Financial Services Roundtable
signed off on the letter, insisting that a "proposed use of eminent domain raises very serious legal and constitutional issues."
The letter asks that Congress "send a strong signal to the Department of Housing and Urban Development
and the FHA
that this unconstitutional and poorly-conceived proposal has no place in our foreclosure mitigation efforts and runs counter to the widely-supported goal of policymakers to return private capital to our housing finance system."
To read the letter in full, click here
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