A federal judge heard final arguments Wednesday in a lawsuit brought by six banks seeking to overturn two anti-foreclosure ordinances in the city of Springfield Massachusetts. WAMC’s Paul Tuthill reports.
The banks sued after the Springfield City Council last summer passed the ordinances, which advocates said would help people stay in their homes and combat urban blight. . One requires mortgage lenders to engage in mediation with homeowners facing foreclosure or face a $300 per day fine. The second requires lenders to post a $10,000 bond to be used to secure and maintain foreclosed, vacant properties. Springfield , for several years, had the highest rate of home foreclosures in the state. The banks contend the ordinances conflict with existing laws. U.S. District Court Judge Michael Ponsor did not indicate Wednesday when he would rule in the case..