LT. GOV. CALLS UPON U.S. ATTORNEY GENERAL HOLDER TO REVIEW THREATS OF RETALIATORY ACTIONS BY MORTGAGE INDUSTRY

September 13, 2012 (Sacramento)-- Lt. Gov. Gavin Newsom called upon Attorney General Eric Holder and members of the Antitrust Division at the Office of the Attorney General to review the actions of some members of the mortgage industry, as well as federal agencies, who have coercively urged local governments to reject consideration of any proposal that would exercise the powers constitutionally granted local governments to use eminent domain to help stem the mortgage crisis.

“Communities have been ravaged by the housing crisis and now members financial sector, who has had long enough to fix the problem, are threatening to redline communities in California that are looking for unique solutions that may save thousands of families their homes,” Newsom said.

In his letter, he states that; it has come to  his attention  that  investors  in private  label securitization (PLS) trusts  may be colluding  to restrain  trade and to redline  communities  in California since they became broadly aware of the  proposal to use eminent domain to purchase loans from  PLS trusts.  

View a copy of his letter here.