Print PDF

From NYLJ:

New York’s largest foreclosure law firm is fighting to overturn a state court requirement that it and other firms submit an affirmation vouching for the accuracy of documents they file for lenders.

Supreme Court Justice Timothy J. Walker in Erie County held a hearing on Nov. 7 on a motion of Steven J. Baum P.C. in a foreclosure case arguing that the year-old rule announced by Chief Judge Jonathan Lippman and implemented by Chief Administrative Judge Ann Pfau (NYLJ, Oct. 21, 2010) violates the state Constitution.

The Baum firm insists that court administrators have overstepped their constitutional authority by imposing an additional burden of proof for lenders. Additionally, they contend the rule violates the attorney-client privilege.

Judge Pfau issued the rule in the wake of a nationwide “robo-signing” scandal that called into question the accuracy of documents lenders submitted in support of foreclosures.

But in Beneficial Homeowner v. Foster, 9436-2009, instead of submitting an affirmation that would let the sale of Shauna M. Foster’s Buffalo home go forward, the Baum firm asked Justice Walker to void the requirement.

Attorney General Eric Schneiderman intervened, arguing that Judge Pfau was within her rights to require the affirmation.

…

[T]he attorney general’s office contended, “The administrative order and rule do not require the plaintiff mortgage holder to submit additional information to prove its case. Rather, the attorney must affirm simply that the plaintiff has reviewed the documents that it relies on to establish its right to foreclosure and confirmed their accuracy. This does not change the quantum or burden of proof, or otherwise alter the procedure of a foreclosure action. Clearly, in the absence of the affirmation requirement, the plaintiff had no right to submit false or inaccurate information.”

The clash comes as the attorney general’s office, according to published reports, is investigating the firm. The office declined to comment.

See also: New York’s Largest Foreclosure Firm Mocked Downtrodden Homeowners at Halloween Party

(3)