Richmond Mayor Gayle Mclaughlin
Posted on 08/25/2013 9:53:31 AM PDT by Olog-hai
When the mayor of Richmond, Calif., and a gaggle of activists and homeowners showed up at the Wells Fargo Bank headquarters in downtown San Francisco this month, they were on a mission to speak with the bank’s chief executive.
They wanted the bank to drop a lawsuit aimed at stopping Richmond’s first-in-the-nation plan to use the government’s constitutional power of eminent domain to “seize” hundreds of mortgages from Wells Fargo and other financial institutions. …
Wells Fargo, three other banks and even the Federal Housing Finance Agency think otherwise.
The banks have filed two lawsuits alleging that the plan is an illegal abuse of eminent domain, which allows governments to seize private property for public use—like a house in the path of a new highway or a piece of land needed for a new park. …
(Excerpt) Read more at hosted.ap.org ...
...and the lawlessness goes on, and on, and on...
It just goes to show you. An effing politician will do anything, ANY THING for a vote. As long as he is not using his own money.
I can’t say here what I think should happen to these public servants, but it involves a dark street.
Richmond Mayor Gayle Mclaughlin
If they succeed there will be no new loans written in that city......ever.
Politicians and corporations deserve each other. Corporate America successfully lobbied SCOTUS to use ED to seize private property for private development, now their left wing counterparts in gov are going to use ED to alleviate homeowners who are underwater with their mortgages. Corporate America have no one to blame but themselves when they lobbied to expand ED beyond its original intent. If business can play that game, radical leftist can do the same. US needs to amend the Constitution to return ED to its specified original intent and make it illegal to expand beyond it for corporations or leftists.
IMHO if, and hopefully it’s a very large if, the City of Richmond goes through with its eminent domain seizure of property it will stop any recovery in the nation wide housing market.
After all, what bank will make any loans to anyone who needs a mortgage to buy a home? Remember banks, like any other business need to make a profit (they too have bills and taxes to pay). Financing loans that get stolen from them means they will lose money, in large scale lots.
In this future environment, the only people who could get a home loan are those who could buy the property, for cash, outright.
I find it interesting that the dimocratic push for everyone to be able to buy mansions regardless of their financial ability may come crashing to earth by the actions of a greenie.
They are too stupid, or too Communistic, to see that.
Is everyone forgetting the requirement the seized property must be paid for by the seizing entity?
The city would have to pay off the mortgages (and it would be GREATER of the remainder or market price) out of its coffers. In cash.
Scouts Out! Cavalry Ho!
Everyone at Richmond City Hall is certainly forgetting. Until it’s time to pay up, that is.
Eminent domain was supposed to be invoked only for "public use" projects. That has changed. Eminent domain can now be used for "public benefit" projects. A Supreme Court ruling awhile back said so.
And that's the road to communism. Now the government can seize property because, in the government's opinion, someone else can derive a greater "benefit" from it.
Very true. But who sets the price? It should be the free market. But it will be a judge instead. And if you think the judge will have to be fair, just remember what happened to the GM bondholders.
If banks want to do business in town after this (a big IF) they will have to charge more for loans that are still good - i.e. the homeowners who didn't buy too much house for their income and pay their mortgages. Once again those who pay their bills are paying for deadbeats.
Banks could also return to redlining (unofficially of course).
Or they could just leave town...
It appears the city is talking about seizing the mortgage rather than the house itself and then paying the mortgage holder a reduced amount because the fair market value of the collateral has deteriorated. We do live in strange times, but I don't think this will fly under the banner of eminent domain.
In another piece on this idiot idea it was explained that the city (theoretically) resells the new, reduced mortgages to a private investment group. Which they think will work because the new mortgages will be (again theoretically) well below the so called market value of the property.
Besides the out and out communism here, I suspect there is a crony capitalist factor that is not being revealed. Some Dem crony is going to make a boatload of money on this.
The seizure requires payment under eminent domain.
The city doesn’t have the money needed to purchase the property
So they’re gonna nationalize private property?
Typical Socialists.
Remember -- a government isn't "stealing" anything in an eminent domain condemnation, since the rightful owner does have to be compensated for the property.
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