The Massachusetts Supreme Judicial Court ("SJC")
recently issued another decision affecting the foreclosure of
mortgages in Massachusetts. In Easthampton Savings Bank v. City
of Springfield, No. 11612, slip op. (Mass. Dec. 19, 2014), the
SJC struck down two mortgage ordinances adopted by the City of
Springfield ("City") in 2011, holding that both
ordinances are preempted by existing state laws.
The ordinances deal with the foreclosure process and were
adopted in response to a wave of foreclosures triggered by the
economic downturn of 2008. One ordinance establishes a program
requiring mandatory mediation between borrowers and lenders of
residential properties. The other ordinance requires owners of
residential buildings that are vacant or undergoing foreclosure to
register with the City and specifies minimum maintenance
requirements. The SJC held that both ordinances conflict with and
are preempted by state law. The SJC also held that a monetary
charge imposed on
