City Councils Impose Greater Liability on Mortgagees and Securitization Trustees

October 17, 2011
The city council of Springfield, Massachusetts recently approved ordinances relating to mortgagee and securitization trustee liability for the maintenance of vacant residential real property or real property in foreclosure and mandatory mediation programs between “creditors” and borrowers. This follows the city council of Chicago passing a substitute ordinance regarding mortgagee and trustee duties for the maintenance of vacant properties and referring two additional substitute ordinances on the maintenance of vacant properties to its Committee on Housing and Real Estate for consideration to alleviate compliance concerns raised by the Chicago ordinance. This update provides a brief overview of these ordinances and the issues they raise for securitizations.