The Wall Street Journal blog reports that Rep. John Campbell (R-Cal.) is introducing legislation that, if enacted, would ban federal agencies alike Fannie Mae, Freddie Mac and the VA from buying mortgages issued in counties that use eminent domain to acquire existing but currently underwater mortgages in order to refinance them. The idea is that this would deprive the promoters of the scheme and the lenders on such mortgages of their principal market, and thus put the kibosh on the whole scheme.
We take it that a lobbying battle is about to erupt. Stay tuned.
See Alan Zibel, Eminent Domain Furor Hits Capitol Hill, WSJ Blog, September 13, 2012 – http://blogs.wsj.com/developments/2012/09/13/eminent-domain-furor-hits-capitol-hill/
Related item. If you aren’t tired of this subject or if you need a good summary of this scheme, check out an article in the Los Angeles Daily News – go to http://www.dailynews.com/ci_21550860/foreclosure-fix?source=most_viewed