The House of Representatives last week passed legislation addressing the use of eminent domain authority to seize and cure underwater mortgage loans as part of a municipality’s efforts to stem high foreclosure rates. By a vote of 353-65, lawmakers passed H.R. 1944, the Private Rights Protection Act, which would bar city and county governments that get federal economic-development funds from using eminent domain to seize mortgage notes from investors and unilaterally restructure the loans before selling to other investors. Included in the legislation is...