The American Securitization Forum urged mortgage servicers and trustees to reject offers from the city of Richmond, Calif. to buy mortgages out of private trusts at deeply discounted prices or face eminent domain proceedings.

“The so-called fair value prices are radically discounted from a reasonable appraisal of the homes in question and from the true value of the mortgages,” said ASF executive director Tom Deutsch in a press release Friday. The group also notes that home prices are rising in many areas.

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