Several large bond investors including BlackRock Inc. and Pacific Investment Management Co. (Pimco) filed a complaint to the federal court in San Francisco yesterday, seeking to pre-empt Richmond, Calif.’s plan to seize a select group of underwater mortgages via eminent domain if lenders don’t agree to revalue the debts, Bloomberg reports.

“Mortgage Resolution Partners is threatening to seriously harm average Americans, including public pension members, other retirees and individual savers through a brazen scheme to abuse government powers for its own profit,” a lawyer for the firms said in an e-mailed statement on behalf of investors.

“I continue to stand by this program and the benefits to our residents,” Richmond Mayor Gayle McLaughlin told Bloomberg. “We feel comfortable with the legality of this.”

Source: Bloomberg

Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×