Supreme Court judge goes after HSBC over shoddy foreclosure filing

TRD 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]

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