AFP’s Sister Organization Comments on Flawed Eminent Domain Proposal

September 05, 2012 JBanking & Financial Services, Property Rights

Americans for Prosperity Foundation (AFPF), the sister organization of Americans for Prosperity, has submitted a comment to the Federal Housing Finance Agency (FHFA) in response to the agency’s notice regarding the “Use of Eminent Domain to Restructure Performing Loans.” Recently, Ed DeMarco, acting director of the FHFA, publicly expressed opposition to the plan being considered by the county of San Bernardino in California to utilize the power of eminent domain to seize and refinance underwater mortgages with the assistance of Mortgage Resolution Partners, a California-based investment firm. This proposal is now being considered in roughly a dozen cities and counties across the country and has sparked a national debate on the issue of eminent domain and the role of government in the housing market.

In the comment, AFPF argues that this proposal is an abuse of the eminent domain power due to the fact that it is unconstitutional, it will raise costs for the taxpayer, create instability in the lending market, and promote crony capitalism.  The comment in its entirety can be read below:

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