Supreme Court judge goes after HSBC over shoddy foreclosure filing

New York /
Jul.July 06, 2011 09:02 AM

A Brooklyn Supreme Court judge has ordered the head of HSBC North America, Irene Dorner, to appear in court July 15 and explain why America’s ninth-largest bank should not be penalized for submitting false documents in a foreclosure case, the New York Daily News reported.

In a decision issued Friday, Justice Arthur Schack dismissed the bank’s case against Bedford-Stuyvesant resident Ellen Tahrer as a “frivolous motion” and a “waste of judicial resources,” after it failed to prove that it even owned the $475,000 mortgage on the defendant’s home. Documents submitted were all signed by “robo-signers,” Schack said, and were “replete with false statements.”

In 2010, Chief Judge Jonathan Lippman introduced new regulations to clamp down on shoddy foreclosure filings and Schack has become somewhat of a folk hero amongst homeowners for staying faithful to those rules, the Daily News said.

“We cannot allow the courts… to stand by idly and be party to what we now know is a deeply flawed process, especially when that process involves basic human needs — such as a family home,” Lippman said.

HSBC spokesperson Neil Brazil said the bank was “reviewing the court papers.” It’s role, he said, “was limited to that of a trustee for an investment vehicle in mortgages. [The bank] did not service this loan and neither prepared or filed any of the legal documents presented to the court.” [NYDN]


Related Articles

arrow_forward_ios
Philip Falcone and his homes at 142 Crestview Lane in Sagaponack and 22 East 67th Street (Getty, Corcoran, Google Maps)
Phil Falcone files appeal halting foreclosure of UES, Hamptons homes
Phil Falcone files appeal halting foreclosure of UES, Hamptons homes
Philip Falcone and his homes at 142 Crestview Lane in Sagaponack and  22 East 67th Street (Getty, Corcoran, Google Maps)
Foreclosure on Phil Falcone’s homes can move forward
Foreclosure on Phil Falcone’s homes can move forward
(iStock/Illustration by Kevin Rebong for The Real Deal)
Foreclosures and evictions could be halted for rest of 2021
Foreclosures and evictions could be halted for rest of 2021
John Philip Sousa and the Sousa House at 80 Washington Place (Getty, Leslie J. Garfield)
Second foreclosure suit filed against owner of Sousa townhouse in West Village
Second foreclosure suit filed against owner of Sousa townhouse in West Village
Simon and David Reuben with One Thousand Museum (Getty, iStock)
Reuben Brothers seeks to foreclose on Zaha Hadid-designed One Thousand Museum
Reuben Brothers seeks to foreclose on Zaha Hadid-designed One Thousand Museum
Brian Harris of Ladder Capital, Aron Rosenberg or R&B, 28 West 36th Street and 32 West 39th Street. (Ladder, Aron Rosenberg via LinkedIn, Google Maps)
Midtown office buildings stave off foreclosure with refi from Ladder Capital
Midtown office buildings stave off foreclosure with refi from Ladder Capital
John Philip Sousa and the Sousa House at 80 Washington Place (Getty, Google Maps, iStock/Illustration by Alexis Manrodt for The Real Deal)
$25M Sousa townhouse in West Village faces foreclosure
$25M Sousa townhouse in West Village faces foreclosure
Miami-Dade Mayor Daniella Levine Cava (Getty, iStock)
Miami-Dade resumes pre-pandemic evictions after unannounced February break
Miami-Dade resumes pre-pandemic evictions after unannounced February break
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...