Adam Leitman Bailey, P.C. Wins Summary Judgment for Lender in Highly Contested Foreclosure Proceeding
In Deutsche Bank National Trust Company, as Trustee for Home Loan Mortgage Loan Trust 2006-1 v. Iseman, et al., a highly contested foreclosure proceeding, Adam Leitman Bailey, P.C. won a motion for summary judgment and an order of reference, in favor of the lender, by sufficiently establishing the lender’s entitlement to judgment as a matter of law, and by defeating all affirmative defenses and counterclaims asserted in the action by the borrowers in their answer.
Included among the borrowers’ affirmative defenses and counterclaims were allegations of violations of the Truth in Lending Act, the Deceptive Practices Act, and New York State Banking Law which, if proven, could have resulted in an award of damages to the detriment of the lender.
In the motion for summary judgment and an order of reference, Adam Leitman Bailey, P.C. successfully argued that the lender did not violate the Truth in Lending Act, the Deceptive Practices Act, or New York State Banking Law by first combing through the entire origination file pulling proofs to sufficiently establish that (i) the lender provided all required disclosures to the borrowers prior to consummation of the loan, (ii) the lender made a reasonable and good faith determination based on verified and documented information that, at the time the loan was consummated, the borrowers had a reasonable ability to repay the loan, and (iii) that the subject loan is not a high-cost home loan.
In opposition to the motion, the borrowers resultantly abandoned the majority of their affirmative defenses and counterclaims but focused on arguing that the foreclosing plaintiff did not establish its standing to foreclose.
The subject note and mortgage, in this case, was assigned to the foreclosing plaintiff prior to the commencement of the action by allonge and by assignment of mortgage from the original obligee.
Subsequent to the execution of the note and mortgage, the original obligee changed its name from Ocean Bank, F.S.B. to Home Loan Investment Bank, F.S.B., which name change the borrowers exploited to argue that the written assignment of mortgage from the changed name obligee was insufficient to establish standing.
Adam Leitman Bailey, P.C. defeated the borrowers’ standing challenge by establishing that a written assignment of mortgage, no matter who executed it, was not a requirement at all to establish standing, as the foreclosing plaintiff produced an allonge, thereby mooting the defense in its entirety.
Adam Leitman Bailey, P.C. thoroughly addressed and disproved each of the borrowers’ remaining defenses, leaving the court with no legal choice but to find for the lender in granting the motion in its entirety.
Jackie Halpern Weinstein and another attorney of the Foreclosure Group at Adam Leitman Bailey, P.C. won this motion for the lender.