Source: http://stopforeclosurefraud.com/tag/bayview-loan-services/
Timestamp: 2019-04-23 18:11:10+00:00

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Tag Archive | "bayview loan services"
ORDERED that failure to comply with any of the directives set forth herein shall result in [*2]the Court issuing any sanction the Court deems appropriate under the CPLR and/or Court Rules, including but not limited to waiver of any interest, attorneys fees and costs to which the plaintiff claims entitlement, as well as dismissal of the plaintiff’s complaint with prejudice.
In this foreclosure action, the plaintiff filed a summons and complaint on January 12, 2010. The complaint essentially alleges that the defendant-homeowner, Lydia Bozymowski, defaulted in payments with regard to the subject mortgage, dated April 22, 2004, in the principal amount of $225,000.00, for the premises located at 8 Hofstra Drive, Greenlawn, New York 11740. The original lender, Florida Bank, N.A. d/b/a Florida Bank Mortgage (“Florida Bank”), is alleged to have had the mortgage assigned to the plaintiff, Bayview Loan Servicing, LLC (“Bayview Loan”), by assignment dated November 25, 2009. The assignment was purportedly executed by Mortgage Electronic Registration Systems, Inc. (MERS) as nominee for Florida Bank. In its application (001), the plaintiff requested a default order of reference and amendment of the caption to remove the “Doe” defendants as parties.
On December 15, 2010, a conference was held and plaintiff’s counsel submitted an attorney affirmation. Initially, the Court notes the plaintiff’s failure to submit proof of compliance with RPAPL §1304. For those actions commenced on or after September 1, 2008 and prior to January 14, 2010, RPAPL §1304 requires that, with regard to a “high-cost home loan” (as defined in Banking Law §6-l), or a “subprime home loan” or a “non-traditional home loan” (as defined in RPAPL §1304), at least 90 days before a lender or mortgage loan servicer commences a foreclosure action against the borrower, the lender or mortgage loan servicer must give the borrower a specific, statutorily prescribed notice. In essence, the notice warns the borrower that he or she may lose his or her home because of the loan default, and provides [*3]information regarding available assistance for homeowners who are facing financial difficulty. The specific language and type-size requirements of the notice are set forth in RPAPL §1304(1).
Pursuant to RPAPL §1304(2), the requisite 90-day notice must be “sent by the lender or mortgage loan servicer to the borrower, by registered or certified mail and also by first-class mail to the last known address of the borrower, and if different, to the residence which is the subject of the mortgage. Notice is considered given as of the date it is mailed.” The notice must also contain a list of at least five housing counseling agencies approved by the U.S. Department of Housing and Urban Development, or those designated by the Division of Housing and Community Renewal, that serve the region where the borrower resides, as well as the counseling agencies’ last known addresses and telephone numbers.
This action was commenced on January 12, 2010. Therefore, barring any statutorily stated exceptions, if the subject loan being foreclosed upon qualifies as a “high-cost home loan,” a “subprime home loan,” or “non-traditional home loan,” the pre-commencement notice requirements of RPAPL §1304 will apply. Plaintiff, however, has failed to submit evidentiary proof, including an affidavit from one with personal knowledge, as to whether or not this action involves such a loan and, if so, proof of compliance with the applicable pre-commencement requirements of RPAPL §1304 or, in the alternative, an affidavit sufficient to show why such requirements do not apply. Such failure requires denial of plaintiff’s application for an order of reference. The boilerplate language in paragraph 4(c) of the complaint regarding compliance with RPAPL §1304 “if the underlying mortgage qualifies,” is ambiguous and is, therefore, insufficient to affirmatively show such compliance, particularly where, as here, the complaint is not verified by the plaintiff.
Plaintiff has also failed to submit a properly sworn affidavit in support of the requested relief. In this regard, CPLR §2309(b) requires that an “oath or affirmation shall be administered in a form calculated to awaken the conscience and impress the mind of the person taking it in accordance with his religious or ethical beliefs.” Accordingly, for affidavits to have sufficient validity, a notary public witnessing signatures must take the oaths of the signatories or obtain statements from them as to the truth of the statements to which they subscribe their names (see, Matter of Helfand v Meisser, 22 NY2d 762, 292 NYS2d 467 ; Matter of Imre v Johnson, 54 AD3d 427, 863 NYS2d 473 [2d Dept 2008]; Matter of Leahy v O’Rourke, 307 AD2d 1008, 763 NYS2d 508 [2d Dept 2003]).
In support of its application for an order of reference, the plaintiff submits an affidavit from Karen Griffith, Vice President of plaintiff Bayview Loan; however, there is no showing that the notary who witnessed Ms. Griffith’s signature took an oath from Ms. Griffith, and no statement by Ms. Griffith attesting to the truth of the statements contained in her affidavit. Instead, there is a statement disguised to appear as a proper oath. Rather than swearing to the truth of the statements contained in her affidavit, Ms. Griffith merely attests in paragraph 12 to the truth of the contents of “the [plaintiff’s] complaint” (emphasis added). Such statement is insufficient to satisfy the form of oath required by CPLR §2309(b) with regard to Ms. Griffith’s [*4]affidavit. This is particularly pertinent here because additional submissions by the plaintiff raise questions as to the reliability of Ms. Griffith’s affidavit, as well as the plaintiff’s standing to bring this action.
A plaintiff has standing to maintain the action only where the plaintiff is the proper assignee of the mortgage and the underlying note at the time the foreclosure action was commenced (U.S. Bank, N.A. v Collymore, 68 AD3d 752, 890 NYS2d 578 [2d Dept 2009]; Federal Natl. Mtge. Assn. v Youkelsone, 303 AD2d 546, 755 NYS2d 730 [2d Dept 2003]; Wells Fargo Bank, N.A. v Marchione, 69 AD3d 204, 887 NYS2d 615 [2d Dept 2009]; First Trust Natl. Assn. v Meisels, 234 AD2d 414, 651 N.Y.S.2d 121 [2d Dept 1996]). It remains settled that foreclosure of a mortgage may not be brought by one who has no title to it and absent transfer of the debt, the assignment of the mortgage is a nullity (U.S. Bank, N.A. v Collymore, supra; Kluge v Fugazy, 145 AD2d 537, 536 NYS2d 92 [2d Dept 1988]). Furthermore, a plaintiff has no foundation in law or fact to foreclose upon a mortgage in which the plaintiff has no legal or equitable interest (Wells Fargo Bank, N.A. v Marchione, supra; Katz v East-Ville Realty Co., 249 AD2d 243, 672 NYS2d 308 [1st Dept 1998]). Either a written assignment of the underlying note or the physical delivery of the note prior to the commencement of the foreclosure action is sufficient to transfer the obligation, and the mortgage passes with the debt as an inseparable incident (U.S. Bank, N.A. v Collymore, supra).
Despite these inconsistent statements of fact in support of ownership, there is an additional submission that suggests the true owner is or may be CitiMortgage, Inc. (“CitiMortgage”), a non-party to this action. In this regard, affixed to the last page of the note is an undated indorsement from Florida Bank to CitiMortgage. This indorsement, which was executed by Jacqueline Ring as Florida Bank’s Vice President, specifically states, “WITHOUT RECOURSE PAY TO THE ORDER OF CITIMORTGAGE, INC.” Thus, the plaintiff’s assertion that it possessed “the loan” on the same date it was executed by the borrower, and the inconsistent assertion that plaintiff obtained the mortgage instruments by assignment dated [*5]November 25, 2009, is rebutted by the fact that when the note was indorsed to CitiMortgage, the mortgage passed to CitiMortgage as an inseparable incident (U.S. Bank, N.A. v Collymore, 68 AD3d 752, 890 NYS2d 578 [2d Dept 2009]. Therefore, without the valid transfer of the note to the plaintiff, the assignment of the mortgage to the plaintiff was a nullity (id.; Kluge v Fugazy, 145 AD2d 537, 536 NYS2d 92 [2d Dept 1988]). Curiously, evidence of the indorsement to CitiMortgage by Florida Bank was not in the plaintiff’s affidavit or attorney affirmation.
The plaintiff has also failed to comply with this Court’s November 1, 2010 Order regarding submission of an attorney affirmation in the form and with the language required by the October 20, 2010 Administrative Order of Hon. Ann Pfau, New York’s Chief Administrative Judge. As explained in this Court’s November 1, 2010 Order, “[p]ursuant to the Administrative Order of the Chief Administrative Judge for the State of New York, dated and effective October 20, 2010, plaintiff’s counsel in foreclosure actions must file with the court in all such actions an affirmation in a form prescribed by the Order.” It remains clear from the language of Judge Pfau’s October 20, 2010 Order, as well from the language of the official mandatory affirmation and its preamble, that the intent of the new Rule is to assure accountability for and accuracy of all court filings in foreclosure actions.
With the intent of the new Rule in mind, this Court requires that after October 20, 2010, the mandatory affirmation must accompany all applications made at any and all stages of foreclosure proceedings. Obviously, a mere single filing at only one phase of the case would not comport with the intent of Judge Pfau’s Order. Indeed, if compliance were sufficient by filing the requisite affirmation at only one phase, improper or untruthful papers could be filed at other phases with virtual impunity. Therefore, plaintiff’s failure to submit the official mandatory affirmation in the form and with the language prescribed by Judge Pfau’s October 20, 2010 Order must result in denial of the requested relief.
Although the Court has heard several attorneys for plaintiff banks informally question Judge Pfau’s authority to have issued the October 20, 2010 Order in the first instance, this Court gives full deference to her Honor’s Order (see NY Const, art VI, § 28). Counsel for plaintiff banks have also claimed that the attorney affirmation required by Judge Pfau’s Order was unofficially amended on November 18, 2010 and posted on the internet in amended form. Counsel, however, has failed to submit an order by Judge Pfau executed after her October 20, 2010 Order, or any other legitimate legal authority, in which the language of the official mandatory affirmation was modified. Therefore, this Court requires counsel to submit an attorney affirmation in the specific form and with the specific language originally mandated by her Honor’s Order of October 20, 2010.
(a) . . . [T]he court, in its discretion may impose financial sanctions upon any party or attorney in a civil action or proceeding who engages in frivolous conduct as defined in this Part, which shall be payable as provided in section 130-1.3 of this Part. . . .
(b) The court, as appropriate, may . . . impose such financial sanctions against either an attorney or a party to the litigation or against both. Where the . . . sanction is against an attorney, it may be against the attorney personally or upon a partnership, [or] firm . . . that has appeared as attorney of record. The . . . sanctions may be imposed upon any attorney appearing in the action or upon a partnership, firm or corporation with which the attorney is associated.
. . . In determining whether the conduct undertaken was frivolous, the court shall consider, among other issues the circumstances under which the conduct took place, including the time available for investigating the legal or factual basis of the conduct, and whether or not the conduct was continued when its lack of legal or factual basis was apparent, or should have been apparent, or was brought to the attention of counsel or the party.
(d) An . . . imposition of sanctions may be made . . . upon the court’s own initiative, after a reasonable opportunity to be heard. The form of the hearing shall depend upon the nature of the conduct and the circumstances of the case.
At the December 15, 2010 conference, plaintiff’s counsel represented to the Court that the plaintiff’s submitted application was, in fact, fully compliant with all applicable statutes, case law and Court Rules. Counsel then tendered to the Court Ms. Burke Tarab’s December 13, 2010 affirmation, which is purported to be compliant with the requirements of Judge Pfau’s Order of October 20, 2010. In counsel’s affirmation, she identifies Robert D. Repass, plaintiff’s Senior Vice President, as the representative with whom she communicated on December 10, 2010 for purposes of executing her affirmation.
According to paragraph 2 of the affirmation, Mr. Repass reportedly informed Ms. Tarab that he “personally reviewed plaintiff’s documents and records relating to this case for factual accuracy.” He also allegedly “confirmed the factual allegations set forth in the Complaint and any supporting affirmations filed with the court, as well as the accuracy of the notarizations contained in the supporting documents (Plaintiff’s Affidavit[s]) filed therewith.” Neither the proofs submitted in support of the order of reference, nor the mandatory attorney affirmation are sufficient to grant an order of reference.
Based on the foregoing, the plaintiff’s application for an order of reference is denied. The nature of the proofs provided by the plaintiff, from all sources, compels the Court to order hearing in accordance with 22 NYCRR §130-1 to determine if the conduct undertaken by the plaintiff and/or plaintiff’s counsel was “frivolous” as defined in 22 NYCRR §130-1.1(c) and what, if any, sanction should be imposed.
This constitutes the Order of the Court.
10 CitiMortgage was NTC’s client?
13 of Mortgage; is that correct?
15 Assignments. It wasn’t just one.
19 did they send over at one time?
20 A I don’t have that number.
25 particular case how many.
1 Q So — I’m sorry.
3 thousand Assignments so. . .
5 hundred thousand, they would send a request?
6 A They send them in groupings.
10 Q — in groupings? Okay.
12 there’s a — a CMI L number.
13 Bayview Loan Services; is that correct?
16 transfer of notes occur through Assignment of Mortgage?
19 THE WITNESS: I still have to answer?
20 MS. PARSONS: If you know the answer.
21 THE WITNESS: Yeah. I’m sorry. Sorry.
24 THE WITNESS: Okay. Got it.
3 Citi. We were hired specifically to do Assignments.
6 loans has taken place from one entity to another.
8 answered the question that I was asking.
9 This document is apparently assigning a note?
11 Q Is that correct?
14 generally how notes are transferred through Assignments?
19 beneficiary is for that note and loan, that mortgage.
1 county recorder’s office as having occurred.
4 Bayview; is that correct?
6 Q That you were just asked to prepare a document?
7 A Prepare Assignments, yes.
9 we see the signature of Bryan Bly as vice president?
11 Q And is Bryan Bly someone who you supervise?
16 Q Who is his supervisor?
18 Q Could you spell that, please?
6 which are questions that he can’t answer.
9 Mortgage. Can you go through that process with me?
14 his — his day-to-day activities would be?
15 A He signs and notarizes documents.
20 Q Is sign and notarize documents?
22 Q Assignments of Mortgage?
23 A Assignments of Mortgage, Lien Releases.
25 contained in the Assignment of Mortgage?
5 of Mortgage, would he sign in the average day?
6 A A couple thousand.
7 Q And — and this — is he permanently employed?
8 Well, let me ask that question in a different way.
11 North; is that correct?
17 Why is that particular address used?
19 can sign as a vice president as well.
23 Q Do you have that document with you?
25 Q May I take a look at that?
8 Q Do you have a copy of the indemnity agreement?
9 A No. I did not bring that with me.
15 that’s the extent of his duties as vice president?
18 listed as either or.
21 supposed to be a vice president or assistant secretary?
23 United States that tells us that.
25 recorded all over the United States?
1 A And Lien Releases.
2 Q And Lien Releases.
4 any other companies other than CitiMortgage?
6 Q What other companies?
8 release all of the names of them.
11 listed as one of the signers.
14 being listed as a 1000 Technology Drive.
15 Could you expound upon that?
21 A No. He’s physically located in Florida.
23 this Assignment of Mortgage?
25 Q And who is Christopher Jones?
3 Q And what are his day-to-day duties?
9 A That’s the department, yeah.
10 Q Is Mr. Bly also a notary?
13 says that the document was prepared by Jessica Fretwell?
15 Q Do you know Ms. Fretwell?
17 Q And is she also an employee of Nationwide?
18 A Yes, she is.
19 Q And what is her job description?
20 A She works in our quality control division.
21 Q What are her day-to-day responsibilities?
25 what do you mean by that?
16 Assignment; is that correct?
5 verified on their side. That document was one of those.
9 a — his signature was created by Planat Press.
11 because that document was never printed out.
13 sent for electronic recording?
18 it being recorded; is that correct?
8 A She is also a signer and a notary.
9 Q And a notary.
12 duties are in executing documents?
18 Executive Committee we marked as 3.
21 Consent, are they all signers?
22 A You mean is their job duty?

References: §1304
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