FHFA Seeks Comment on Use of Eminent Domain
The Federal Housing Finance Agency (FHFA) called for comments on the use of eminent domain to restructure existing home loans. Comments are due on September 7, 2012. FHFA states in a recent press release that the agency has significant concerns about the use of eminent domain to revise existing financial contracts, and that action may be necessary on the agency’s part to avoid a risk to safe and sound operations of its regulated entities and to avoid taxpayer expense. Additionally, FHFA has concerns that such programs could negatively affect the extension of credit to borrowers seeking to become homeowners and on investors that support the housing market. Credit Union National Association (CUNA) will be submitting its own comment letter on this topic, and would like to hear feedback from credit union mortgage lenders relating to this issue. If you have any comments, please send them to CUNA, Att: Mary Dunn or Jared Ihrig at your earliest convenience.