For several weeks, PublicCEO has been following the City of Richmond and its plan to use eminent domain to seize underwater properties. We have even heard from the Mayor herself, detailing the benefits she sees in the plan.
Richmond’s bold move has since made national headlines and attracted the attention of one Rep. John Campbell (R, Irvine). The Congressman is striking back with legislation and a strong condemnation of the practice, accusing the main financial backer of Richmond’s plan—the San Francisco-based firm Mortgage Resolution Partners (MRP)—of colluding with state and federal Democratic leaders.
The Washington Free-Beacon reports that the current chairman of MRP, Steve Gluckstern, has donated more than a quarter million to Democratic candidates and causes in addition to his bundling of up to half a million for Barack Obama’s 2008 Presidential campaign. Accusations of collusion are further supported by a close relationship between Nancy Pelosi and MRP former executive chairman Phil Angelides and records of large investments from former San Francisco Mayor and Assembly Speaker Willie Brown.
Rep. Campbell hopes to employ a “poison pill” approach much like the Federal Housing Finance Authority who, according to the LA Times, has “threatened to choke off mortgage lending in cities that use eminent domain to seize underwater loans from lenders.” Responses by both the FHFA and Campbell come days after major financial institutions, including Wells Fargo and Deutche Bank, initiated litigation against Richmond.
For more on MRP, its Democratic ties, and the national response to Richmond’s eminent domain plan, read the full article at The Washington Free Beacon.