Washington Report

Advocacy Updates from Washington D.C.

FHFA Raises Concerns Over Eminent Domain Proposal

On Aug. 8, FHFA, the conservator of Fannie Mae and Freddie Mac (the GSEs), sent a notice to the Federal Register announcing the acceptance of public comments on the restructure of performing loans through the use of eminent domain. 

Under a proposal in San Bernardino County, Calif., the local government would purchase performing mortgages that are underwater out of private label securities at a discounted value from the investors, in order to modify the loan terms. FHFA expressed concerns about the use of eminent domain for this purpose and indicated that the GSEs and the Federal Home Loan Banks were likely to experience losses.

NAR is analyzing the potential effects on credit access and will provide comments to FHFA. Comments are due no later than Sept. 7, 2012.

Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.