National Mortgage News has reported that HUD Secretary Shaun Donovan stated at a Politico event that the legality of the use of eminent domain to force the sale of mortgages should be decided by the courts.  The American Land Title Association’s chief executive Michelle Korsmo criticized the remarks, stating “Waiting for these eminent domain proposals to be resolved in the court system will likely take years and cost these interested parties significant dollars.”  HUD’s current position is that the use of FHA to refinance seized mortgages can only be decided when the agency receives a loan application, as indicated in an Aug. 12 letter to three California congressmen when Richmond, Calif., was facing private lawsuits to prevent it from condemning and refinancing underwater private-label loans.  National Mortgage News reported that the letters says, “Pending legal developments and possible further execution of the plans in questions, HUD does not know whether any new mortgage which might be created would qualify for insurance by the Federal Housing Administration.”