The American Securitization Forum (ASF) released a statement today expressing its dissapointment after the Chicago City Council approved an ordinance on vacant homes.
The newly minted rule requires banks and other mortgage holders to maintain vacant homes before foreclosure proceedings are done. This would mean that these institutions have to perform these functions before they even own the homes.
The ASF went as far as to say that the measure is potentially illegal. The ordinance goes into effect later this month unless it is judically blocked.
“ASF members are deeply disappointed this ordinance is moving forward. It’s misguided and potentially illegal,” said Tom Deutsch, ASF executive director. “Further, it will make mortgages more expensive and harder for Chicago residents to obtain because lenders will have to factor in the poten-tial high costs of maintaining vacant property they don’t own.”
Deutsch added that this legislation, although a well-intentioned effort to improve the upkeep of vacant homes in Chicago, might actually back-fire and harm ordinary Chicagoans.
In fact, the he said that this might specifically impact first-time homebuyers who are desperately needed to turn vacant houses back into inhabited ones and who contribute to their respective local communities.