Cities Weighing Mortgage Seizures Get Washington’s Attention
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U.S. regulators and lawmakers are seeking ways to keep local governments from using the power of eminent domain to seize mortgages, citing concern about the potential cost to taxpayers, investors and homebuyers.
The issue, the subject of a Mortgage Bankers Association symposium today, has gained attention in Washington after the city of Chicago and California’s San Bernardino County said they would consider confiscating home loans and cutting borrowers’ debt. No community has taken the step so far.