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A controversial plan to use a municipality's eminent domain powers to seize properties in defaulthas suffered a severe setback with FHA, Ginnie Mae, and HUD now having no funds to insure, securitize, or establish a federal guarantee of any mortgage or mortgage backed security that refinances or replaces a mortgage that was subject to eminent domain condemnation or seizure.

San Francisco's Board of Supervisors will be voting on entry into a Joint Powers Authority agreement with Richmond (CA) for the purpose of using the City's power of eminent domain to seize underwater mortgages. State and National Mortgage Bankers Associations sent letters in opposition. SAMCAR continues to monitor the matter.