The city of Richmond, Calif., has offered to purchase 624 home loans from mortgage servicers and trustees and is moving forward with a plan to restructure the underwater loans or potentially seize them through eminent domain.

"We're not going to back down," Mayor Gayle McLaughlin told reporters on a conference call Tuesday. "We feel it's the responsibility of the servicers and banks to correct this."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.