Stevens, David. From:Stevens, David Sent:20 Jun 2013 ll :43: To: DeMarco, Edward Subject:LCONTENTJ Fwd: North Las Vegas Update DEC 30-FHFA- 36

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1 Stevens, David From:Stevens, David Sent:20 Jun 2013 ll :43: To: DeMarco, Edward Subject:LCONTENTJ Fwd: North Las Vegas Update Sent from my ipad Begin forwarded message: From: "Mills, Pete" 1 (b)(6) H 6 ~morlgugebankers.org>> Date: June 20, 2013,5:52:29 AM EDT To: "Stevens. David" ~ (b)(6) L@mongagebankers.org<mailto:l (b)(6) ~mongagebankers.org>> Subject: Fwd: North Las Vegas pdate Guinea pigs. Sent from my. iphone Begin forwarded message: From: "Killian, Chris'' <I (6)(6) ~1sifma.org<mai1tol (b)(6) ifpsifma.org» Date: June 20, 2013,2:23:14 AM EDT To:. (b)(6 l!'cmba.eom<mailto (b)(6) DEC 30-FHFA- 36

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4 (b)(6) Subject: North Las Vegas Update To: SIFMA Eminent Domain Member WG Eminent Domain Industry. Coalition Re:. North Las. Vegas Update. All, La-;t night the North Las Vegas City Council voted to enter in to an advisory services agreement with MRP. The agreement la-;t-; fm 60 days, doesn't obligate the city to exercise eminent domain, and requires that MRP return answer-; to a number of questions to the city council. An article from the Las Vegas Sun is below. We will revert with mmc information when we have it; the city's website appears to be down at the moment. Two local articles arc below. Regards. Chris North Las Vegas approves plan to use eminent domain to aid underwater homeowners By JAMES DEHAVEN LAS VEGAS REVIEW-JOL"RNALJune 19,2013!0:49pm North Las Vegas City Council members threw a controversial lifeline to underwater homeowners Wednesday. picking up a complex, amended plan aimed at keeping thousands of upside down bonowers in their homes. The proposal passed on a 4-1 vote. with Ward 4. Councilman Wade Wagner against it. Cnder it,. the city entered into an advisory services agreement with Mortgage Resolution Partners. or MRP, the San Francisco-based authors of a controversial program that refinances underwater home loans seized through eminent domain. Nevada's third-largest city becomes the first in the. state to. offer even. a cautious welcome to. the effort, one that opponents- including real estate agents, mortgage bankers and title insurers- warn could face a series of challenges in court. DEC 30-FHFA- 39

5 Tweaks to the proposal Wednesday ask MRP to take stock of how many homeowners will be helped by the effort and at what cost to the city. The amended agreement also lets city leaders opt out of the program at any time before it circles hack to City Hall in August, when officials will consider broadening it. Once in place, the plan allows city officials to seize a had home loan in much the same way it condemns a blighted property. The program will see city officials use eminent domain to pay mortgage investors less than face value for a troubled home loan while representatives from MRP restructure the homeowner's debts in a new mortgage backed by the Federal Housing Administration. The company will charge the city a per loan advisory fcc and both parties will take a cut on the difference between the original bad mortgage and a new. fha-backcd loan resold to third-party mortgage investors. An estimated 75 percent of North Las Vegas homeowners arc still at risk of losing their home. MRP officials suggested that could cost the already recession-ravaged city, which teetered on the brink of bankruptcy this time last year, some. S50 million in lost property tax revenues.. Only about 15 pcn:ent or the city's 30,000 underwater borrowers quali ly for the revised phm adopted this week, which applies only to private label securities bundled mortgages not held by Fannie Mac and Freddie Mac, which have been left largely untouched by federal housing refinance efforts. North Las Vegas homeowner Darrell Whaley, one of those lef in the cold by efforts to enroll in more than a dozen tederally backed loan modification programs, oftered heartfelt support for the program. Without it, Whaley said, homeowners like him would have nowhere to go. "I'm over $200,000 upside down in my home... Whaley told council members and a standing room only crowd at. City Hall. "I can assure yonl"ve looked into. every government program,. and I would have to default or I would have to stop making payments in order to qualify. 'There is no government program for me.. l need you to take a shot at. this: MRP representatives plan to raise private capital to hack the purchase of loans like Whaley's, hut said they couldn't guarantee the resale of that debt to a third party. Nevada Bankers Association President Bill Uffelman fears investors won't line up to purchase some 4, 700 cityacquired loans, leaving unqualified bmrowcrs and other North Las Vegas taxpayers on the hook for thousands of undcrperforming notes the city can't offload. I Ic also voiced legal concerns over the move, one he. and other plan opponents said. could run afoul of state. limits on the transfer of emincnl domain-acquired property between private parties. "It's an unconstitutional taking of property rights,'' Ullchnan said Wednesday. "Investors in these mortgages will have standing to sue, so any revenue stream for the city is a long way ofi" Those fears spooked Wagner, the only one of five council members willing to voice unqualified opposition to the eftort. 'There's a lot of unanswered questions," the Ward 4 councilman said. "But I think the only thing it guarantees is a lot of litigation for a lot of years.'" MRP investors, including developer and Greenspun Media Group chairman Danny Greenspun, have cited court decisions and legal opinions in defense of the program. calling criticism "totally inaccurate'" in neighborhood meetings before this week's vote. Wednesday saw Greenspun express similar confidence in the plan's popularity, suggesting an MRP toehold in N01th DEC 30-FHFA- 40

6 Las Vegas could soon grow into a launchpad for expansion into Las Vegas, Henderson and the rest of Clark County. "Sure we'll keep going,.. he said before this week's meeting. ''... There's no reason we wouldn't take it elsewhere." Contact reporter James DeHaven at viewnews.com> or North Las Vegas moves ahead with controversial rescue of underwater homes 13/jun/ I ')/north-las-vegas-oks/ By Conor Shine Wed,.Tun 19,2013 (g:35 p.m.) The North Las Vegas City Council has voted to move forward with a controversial plan that calls for the city to usc its powers of eminent domain to help underwater homeowners refinance their mortgages. The coum:il voted 4 to I. with Councilman Wade Wagner in opposition, to enter into an agreement with Mortgage Resolution Partners that will allow them to. begin surveying the housing market The agreement is tenninable at will by the city and requires MRP's representatives to report back. to the council with answers to several questions that were laid out at Wednesday night's wuncil meeting. The MRP plan publicly surfaced tor the first time in March. resulting in several public meetings to discuss the proposal and months of behind-the-scenes lobbying. The plan calls lor the company's private investors to purchase a specific subset of underwater home mortgages that are held in mortgage-backed securities. The mortgages would be bought at market value significantly below their initial value and then refinanced back to the original homeowner with a lower principal. North Las Vegas would serve as the middleman in the process, using its power of eminent domain to seize the mortgages from trusts that own the mortgage-backed securities. Once the mortgage is refinanced and sold again, the city would receive a fee of several thousand dollars for its troubles. Investors in Mortgage Resolution Partners would sec a return on their investment whenever a home is refinanced and the company itself would receive a tlat S4.500 per transaction fcc. f-urther action would be needed by the city council before any mmtgages were actually bought using its powers of eminent domain. Back to top<hllp://m.l vsun.t:om/news/20 13~jun!l9/north-las-vegas-oks/#containcr> DEC 30-FHFA- 41