Roman Pino, a Greenacres drywall hanger, has become a source of trepidation for banks, according to the Palm Beach Post.
The Florida Supreme Court will soon review a lawsuit by Pino that disputes whether a bank can avoid punishment for filing fraudulent documents via voluntary dismissal, a decision that could have serious implications for lenders.
Bankers argue that a victory by Pino could mean a “widespread financial crisis.” The Mortgage Bankers Association and the Florida Bankers Association, both of which are supporting the Bank of New York, claim that the fear of retribution for making what they consider to be simple errors on documentation will discourage banks from awarding loans and filing legitimate claims.
That claim is without merit, however, according to Robert Jarvis, a law professor at Nova Southeastern University. “Will it be devastating? That’s an argument the bankers have been saying all along, and it’s ridiculous,” he said. “All anyone is saying is that bankers need to get their paperwork in order.” [Palm Beach Post]