Professor Hockett Testifies Before Congressional Panel
Washington, D.C., September 13, 2012
On September 11, Cornell Law Professor Robert Hockett testified before the Congressional Financial Services Panel Series on The Housing Crisis and Policy Solutions: Should Eminent Domain Be Used to Save Underwater Homeowners?
Hockett discussed his “Municipal Plan” for underwater mortgage loans, testifying that “it is incumbent on local government to purchase underwater mortgage loans from private label securitization trusts, reduce principal, thereby mitigate loss for borrowers, communities and investors, and in so doing stabilize homeownership rates, families, neighborhoods, and communities across the country.”
In his testimony Hockett discusses the constitutionality of using eminent domain for principal reduction; the precedent for using eminent domain to purchase mortgages; whether eminent domain should be limited to certain types of loans or conditions; and how cities and judges determine fair market value for a mortgage loan.