The City of Richmond in Northern California has taken action to implement a controversial plan to use eminent domain to acquire residential mortgage loans by making offers to trustees and servicers for RMBS trusts to purchase more than 600 mortgage loans. The plan was developed and marketed to municipalities across the country by San Francisco-based Mortgage Resolution Partners (MRP). MRP has entered into advisory agreements with additional cities in California and Nevada. Opponents of the plan warn that MRP's seizure program is unlawful and unconstitutional and could cause loans in such cities to be excluded from securitizations. The industry also has expressed concern that lenders and investors might withdraw from the markets that permit seizure of performing mortgage loans through the use of eminent domain.
On August 15, 2013, please join guest speaker Chris Killian, Managing Director at SIFMA, and Mayer Brown partners Bronwyn Pollock and Timothy McOsker as they discuss the threat of eminent domain and the potential impact on investors, mortgage trusts and the marketplace.
Disclaimer: Mayer Brown represents clients with respect to the eminent domain issues being discussed in this teleconference, including in pending litigation. The matters discussed during the call reflect each speaker's individual views and not those of the firm or its clients.
Mayer Brown’s Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm’s global resources from multiple practices and offices, the initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.