The Federal Housing Finance Agency is currently pondering how, or whether, the GSE conservator will intervene in the controversial and ever more contentious proposal to use local eminent domain laws to effect principal reduction for homeowners by seizing mortgage loans. Early last month, the FHFA cited “significant concerns” about the eminent domain proposals, warning that “action might be necessary” on its part to avoid a risk to the safe and sound operations of Fannie Mae and Freddie Mac, as well as to avoid taxpayer expense. Some 74 organizations and members responded to FHFA’s request for input and submitted comment letters. “The acting director will consider the input received in making a final decision,” said a Finance Agency spokesman.