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July 26, 2014

Investors to Fight Key Mortgage Proposal

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Investors to Fight Key Mortgage Proposal

Investors are opposing a plan to use the government power of eminent domain to seize the mortgages of underwater borrowers, which California's San Bernardino County will consider on July 13.

If launched nationwide, the concern is that the proposal could force investors and banks to take sizable losses on their portfolio of mortgage bonds because the powers of compulsory purchase require compensation only at the current — i.e., depressed — prices.

Source: "Investors to Fight Key Mortgage Proposal," Financial Times (07/13/12)

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