The California Public Employees Retirement System, an influential mortgage-backed securities investor, is showing concern about a program in Richmond, Calif., that could involve using eminent domain to seize loans.
“We are sympathetic to homeowners but as fiduciaries our focus must be in the best interests of our members,” CalPERS said in a statement Tuesday, when asked about the concern.
“We are watching the issue closely and have some concerns about the precedent this may set and the impact to investors in the MBS market.
A judge recently ruled against an investor group’s legal effort to stop the Richmond program from moving forward but a legal representative of the group said the ruling is only a temporary setback and it will
