MBA CEO condemns 'ill-advised' proposal by Richmond, California, to seize underwater mortgages via eminent domain, says it would impose 'severe' long-term costs on homeowners, including raising mortgage costs and depressing home values
July 30, 2013
– David H. Stevens, President and CEO of the Mortgage Bankers Association (MBA), today issued the following statement on a proposed program in Richmond, California that would allow local officials to use eminent domain powers to seize mortgages and force financial losses on millions of Americans:
“The program is a short-term solution for a few underwater borrowers that will have severe negative long-term costs for every homeowner in the city. Mortgages in Richmond will become more expensive, making neighboring cities more desirable for prospective home buyers, which will hold down home values for everyone in Richmond. In short, the program is ill-advised and likely unconstitutional and will add to Richmond’s problems rather than solve them.”
For more information on this issue, please visit MBA's Eminent Domain Resource Center.
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site: www.mortgagebankers.org.