Compliance: Mortgagee liability under "Crack House Act"

An interesting post on Shephard Mullins' White Collar Defense Blog, "Got Pot? The Feds Try to Make Mortgagee Banks Liable Under the Crack House Statute". First and last paragraphs:

Banks holding mortgages now have one more thing to worry about: potential criminal and civil liability and forfeiture under the federal “crack-house” statute. Sound crazy? Read on, because late last year the four U.S. Attorneys in California threatened banks with liability simply because mortgaged properties were being used as medical marijuana dispensaries, even though such dispensaries are legal under state law.

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At some point, there may be a judicial pronouncement that clarifies the scope of this supposed “mortgagee” liability, probably by explaining when mortgage holders “manage and control” the property for purposes of the crack-house statute.  The immediate problem, however, is what mortgagee banks and their counsel should do in response to this situation.  Coordinated lobbying and appeals to congressional representatives seem appropriate.  Banks should also review their portfolios to identify potential problem properties and explore the possibility of drafting loan documentation giving them the ability to oust owners, tenants, and occupants more expeditiously.  And if a bank receives a “notice” letter in the meantime?  Ask the government for more time.

Wow. What about investors in mortgage-backed securities? EMM