Document Type
Article
Comments
This comment letter predates the author's affiliation with Cornell Law School.
Abstract
There has been a lot of fear-mongering by financial industry trade groups over the widespread use of eminent domain to residential mortgages. While there may be legitimate business reasons to oppose its use, its inconsistency with Takings jurisprudence should not be one of them. To date, the federal government’s responses to the current crisis in the housing markets have been at cross purposes, half-hearted and self-defeating. So it is not surprising that local governments are attempting to fashion solutions to the problem with the tools at their disposal. Courts should, and likely will, give these democratically-implemented and constitutionally-sound solutions a wide berth as the ship of state tries to right itself after being swamped by a tidal wave of mortgage defaults.
Date of Authorship for this Version
9-7-2012
Keywords
Eminent domain, Residential mortgages, Regulatory taking, Mortgage-backed securities, Just compensation
Recommended Citation
Reiss, David J., "Comment on the Use of Eminent Domain to Restructure Performing Loans" (2012). Cornell Law Faculty Working Papers. 146.
https://scholarship.law.cornell.edu/clsops_papers/146