WASHINGTON, D.C. – Representative Mulvaney released the following statement on the use of eminent domain to seize mortgages that are underwater or in foreclosure:
“It appears that yet another municipality is considering the use of eminent domain to seize mortgages that are underwater or in foreclosure. Earlier this week, Irvington, New Jersey, joined Richmond, California, as the most recent municipality to consider using this bizarre and wrong-headed approach. Left unchecked, this practice could make it more difficult for future homebuyers to get a mortgage. Yet, the Federal Housing Authority — an agency supposedly dedicated to making it easier for people to buy their own homes — continues to refuse to address this growing concern. Other federal agencies have condemned the eminent domain abuses. The FHA should do the same, lest even more taxpayer dollars end up at risk.”
###
(Editor’s Note: The above communication is a news release and does not necessarily reflect the editorial position of FITSNews.com. To submit your letter, news release, email blast, media advisory or issues statement for publication, click here).
23 comments
Fuck him, what the fuck does he care what some municipality in CA does? What has that asshole done for South Carolina, ever?
Tell us how you REALLY feel. *Chuckling*
Damn right I’m pissed off!
Some unhappy banker made a big contribution to Mick. He will pocket that along with the $200,000 +- a year the taxpayers give him for absolutely nothing.
Mick is a major league taker.
Mick Mulvaney believes in “local control” only when it benefits corrupt land developers like himself. I am PROUD to say that the mayor of Richmond California is a member of MY political party, the Green Party. Democrats AND Republicans care only for the demands of the 1% who finance their campaigns. Good for Mayor Gayle McLaughlin. If Mick Mulvaney has the nads to debate Mayor McLaughlin, I am sure we can arrange for her to debate him here on Occupy The Microphone. That would be heard all across the state, and the planet, at our website, http://www.OccupyTheMicrophone.com or the station website, http://www.woil-am.com Live at Five weekdays.
That would be heard all across the state, and the planet…at a website nobody has ever heard of.
Well, now that you have responded I am sure we’re now one of the Top Ten Sites out there. After all, who doesn’t follow SnoopDog?
Eminent domain must offer just compensation for seizing properties, right? Does that mean these governments are paying off the mortgage? I’m guessing since these are underwater or foreclosed properties, that the value of the property is less than what is owed on it, though.
If I understand correctly the municipalities would buy the actual mortgages, not the secured property, and pay fair market value for them. The banks/lenders are objecting strenuously. You’re right that these are underwater properties, so it’s not like the banks are going to ever collect the full mortgage amount through foreclosure. I’m not sure why the banksters object so much, maybe because they think it sets a precedent? Unfortunately, that asshole Mulvaney’s statement fails completely to explain why this is a problem.
I wonder how much $$ Mulvaney receives, directly or indirectly, from the banksters? A shitload, I bet.
The value of the mortgage is the value of the security interest in the property. The difference between the mortgage balance and the security value is lost when taken by eminent domain so the bank must write-off the difference. Currently the asset is carried on the banks that hold mortgages at face value until foreclosed and that value counts towards its required capitalization. Many of the investment trusts that hold the mortgages that were securitized have claw-back provisions against the issuers — the brokerage houses and investment banks and initial lenders would be holding the bag for the difference between the mortgage and value of the property if taken by eminent domain.
Thank you, sir. So who endsup holding the bag when the bankforecloses z $500,000.00mortgage on a property that’s now only worth $200,000.00?
The Federal Reserve is GIVING 85 BILLION dollars a MONTH to Wall Street
banks, and you’re worried about someone with a $200,000 mortgage getting
a break so they can stay in their home?
No; I’m just trying to figure out why some people’s panties are in a bunch over this.
Sorry Jesus. I wasn’t actually directing that at you, but at those who believe this is the big deal. Like those who think that food stamps and foreign aid are the real budget breakers instead of the money stolen by Wall Street and spent on the military. Straining out a gnat and swallowing a camel. Sorry for getting all biblical and such.
You are forgiven, my son.
The bank.
Thanks; that’s what I thought …
Apologies for all the typos. I’m only human …
I love it. Usually it’s the small government types in the state legislatures telling cities and counties what to do and usurping their powers.
For Mick to dive in from the US House must mean he’s got some real estate bubble type activity going on that might be upset by what these cities are doing.
How it works (for those who care):
1) Homeowner buys house costing $300,000, borrows $300,000 to do it.
2) House declines in value to $200,000
3) City takes the property through eminent domain; pays 80% fmv ($160.000)
4) City sells it back to the homeowner at $180,000.
5) City “makes” $20,000; pays that in a fee to a company called “Mortgage Resolution Partners,” the investment firm that is selling this concept. MRP, btw, is founded by a high-ranking Obama and Clinton bundler.
The federal connection is that the FHA has suggested it would offer the “new” loans back to the original homeowners with as taxpayer guaranteed loans.
It probably doesn’t surprise anybody that the Green Party embraces this. After all, all it is is stealing from the original lender, right? So what if the politically well-heeled benefit and the taxpayer is left on the hook.
So…bank loses $140,000…deadbeat homeowner makes $20,000 …and well-heeled Friend of Obama makes $20,000…with taxpayer on the hook if the homeowner still can’t pay. Pretty good deal. Where do I sign up (for the homeowner or Friend of Obama part. That bank part looks like it sucks.)
How about a link or two to prove the accusations made above “The General”? Here’s one I found.
http://mortgageresolution.com/fact-or-fiction
And for the record, Greens are more despised by Democrats than Republicans. Of course you conveniently ignore the fact that I laid this at the feet of BOTH the Democrats AND Republicans. Remember, it was both parties on the Supreme Court who ruled in favor of seizing personal property and giving it to private developers, like Mick Mulvaney, in Kelo V City of New London. Facts are a bitch. Why not try some?
http://en.wikipedia.org/wiki/Kelo_v._City_of_New_London
The Chair of Mortgage Resolutions Partners is also the chair of Forbes Magazine…not exactly a bastion of the left.
http://www.forbes.com/profile/steven-m-gluckstern/
Here’s an interview with the CEO of Mortgage Resolution Partners:
http://abcnews.go.com/blogs/business/2013/08/richmond-calif-eminent-domain-proponents-critics-qa/
And this man, John C. Vlahoplus, is Chief Strategy Officer, and used to work for Credit Suisse, a HUGE international bank.
http://www.tpl.org/john-c-vlahoplus
Now…may I see even ONE link to back up your statements? I’d particularly like to see one where the Democrats and Greens work together, as all I have seen from them is cooperation with Wall Street banks, side by side with far too many Republican leaders.
I find this amusing. Banks have been screwing builders, homeowners, etc. and now they are bent about this. I would suggest, if possible, that everyone check the real estate holdings of your local bankers, particularly recent acquisitions. It is amazing how supposedly “struggling” banks can afford employees that are now real estate moguls.