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O’Melveny’s Dellinger Quoted in MNI Washington on Use of Emminent Domain to Seize MortgagesSeptember 24, 2012
O’Melveny & Myers LLP partner Walter Dellinger was quoted in the September 20, 2012, MNI Washington article “US MBA Tries To Put Kabash On Eminent Domain For Mortgages.” The article discussed the September 20, 2012, symposium held by the Mortgage Bankers Association in Washington, DC, where the topic of local governments using powers of eminent domain to seize underwater mortgages was discussed by a variety of speakers. Dellinger, a Washington-based member of O'Melveny's Appellate Practice, recently co-authored along with O’Melveny partners Jonathan Hacker and Matthew Close a legal memo prepared on behalf of the Securities Industry and Financial Markets Association (SIFMA) that addresses the numerous legal and Constitutional problems with a proposal created by Mortgage Resolution Partners and being considered by the County of San Bernardino in California to use eminent domain to acquire mortgage loans.
The article quoted Dellinger as stating during his remarks at the MBA symposium that "[t]he fact that there are private profit-seeking investors that are going to make money...will bring alarm bells to the courts that this will just be a transfer of wealth.”