The loophole should have been closed decades ago. There is corruption when an enforcement agency can sieze assets and keep them to themselves with no recourse given to the entities whose assets were siezed. This happens over and over again. Private property being seized by local law enforcement agencies and kept without recourse given to the entities whose assets were taken.
The federal government is correct in closing the "loophole" in federal law that allows local law enforcement to make a civil forfeiture of a person's assets WITHOUT due process of law. Many local police department use this loophole to enhance their department's budget on the backs of visitors to their state.
The police don't need to keep things from which they do not need to collect forensic evidence. If it is stolen, it needs to be returned to the rightful owner. If it rightfully belongs to the party from whom it was seized, it needs to be returned. Pictures and testimony that the objects exist should be enough to be presented in court. The only exceptions should be things that need to be tested and possibly destroyed as a result of testing, as well as perishable things that no one would want returned, anyway.
If the departments could keep the assets it just encouraged to to seize things. It likely resulted in tons of things being seized that should have been left alone. I think it's a great thing they closed the loophole. It should have been closed a long time ago. At least in my opinion.