Executives form a number of companies including Investment Company Institute (ICI), have banded together to beg U.S communities not to enter into agreement with the investment fund Mortgage Resolution Partners, and sent a letter to Congress protesting the use of eminent domain power to acquire "performing but underwater mortgage loans held by private-label mortgage backed securities and then refinance the loans through programs administered by the Federal Housing Administration."

Representatives from Securities Industry and Financial Markets Association (SIFMA); American Bankers Association; American Council of Life Insurers (ACLI); American Land Title Association; American Securitization Forum Association of Mortgage Investors; Housing Policy Council; Investment Company Institute; Mortgage Bankers Association; National Association of Home Builders; National Association of Realtors, and the Financial Services Roundtable signed off on the letter, insisting that a "proposed use of eminent domain raises very serious legal and constitutional issues."

The letter asks that Congress "send a strong signal to the Department of Housing and Urban Development and the FHA that this unconstitutional and poorly-conceived proposal has no place in our foreclosure mitigation efforts and runs counter to the widely-supported goal of policymakers to return private capital to our housing finance system."

To read the letter in full, click here.  

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