As if there were not enough considerations for investors sizing up the many distressed MBS still out there, it looks now like they should also take into account growing momentum in municipal efforts to get securities trusts and servicers to pay for distressed property upkeep or face fines.

Perhaps the only upside for investors related to this development is that it is somewhat quantifiable, although as Moody's Investors Service noted in a recent report it does also add to some unquantifiable costs such as possible lawsuits.

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