AMI Releases Podcast Warning Against the Richmond, CA Eminent Domain Foreclosure Plan
Washington, D.C. The Association of Mortgage Investors (AMI) has released a new podcast discussing the use of eminent domain as a foreclosure mitigation tool. AMI continues its outreach to policymakers on this important topic, whose use could damage the fragile California housing recovery.
To listen, please click after the link: EDRICH1New
AMI is extremely sympathetic to the problems surrounding the housing sector and borrowers for the past six years, however, the case has not been satisfactorily made for the use of eminent domain, particularly given all of the programs available to trouble borrowers, some of which are too new to have fully registered their potential. The use of eminent domain to restructure residential loans is a controversial, untried, and likely an unconstitutional use of government power. The use of such government power is an extremely blunt instrument; the burden on its proprietary and the justification for its use must reside with its advocates. While some would claim that it is a last resort, there are no indications that this is true or that, in the case of performing mortgages, said borrowers should be entitled to relief. Either way, it appears that the negative consequences will always outweigh the purported benefits. Further, housing analyst and government data suggest that after a six year housing crisis, many criteria, including home prices and relief for borrowers, are showing consistent improvement.
The AMI was organized as the primary trade association representing investors in mortgage-backed securities, including unions, university endowments and pension funds. The AMI was founded to play a primary role in the analysis, development, and implementation of mortgage and housing policy to help keep homeowners in their homes and provide a sound framework that promotes continued home purchasing.
For more information, please contact AMI at 202-327-8100.
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