Certified Forensic Loan Auditors, LLC

 
  Upcoming Classes

Search CFLA's Article Archive:

NY Federal judge slams Wells Fargo for forged mortgage docs

  

nypost.com | February 2, 2015

Judge Robert Drain has a message for Wells Fargo: “Forged” foreclosure documents don’t cut it in New York’s federal courts.

In a stunning 30-page decision on January 28, Drain, a federal bankruptcy judge in New York’s Southern District, blasted Wells Fargo, America’s largest mortgage servicer, for false documents it used in trying to prove its right to foreclose on Westchester County resident Cynthia Carrsow Franklin’s home.

Drain shredded Wells Fargo’s arguments regarding two crucial documents needed to prove ownership of a loan: an indorsement (another term for endorsement) on a note and an assignment of mortgage.

These documents have to be created properly within a certain time frame, or they won’t hold up in court.

The issue lies at the heart of the foreclosure crisis, and continues to haunt hardworking New Yorkers like Franklin, a speech pathologist for autistic children, to this day.

“… [T]he blank indorsement, upon which Wells Fargo is relying, was forged,” wrote Drain in a stinging rebuke to the bank. “Nevertheless it does show a general willingness and practice on Wells Fargo’s part to create documentary evidence, after-the-fact, when enforcing its claims, WHICH IS EXTRAORDINARY,” wrote Judge Drain with emphasis.

Drain went on to say that “it is conceivable that all of Wells Fargo’s newly created mortgage assignments and newly created indorsements were proper” but that the burden was on Wells to show that, and it didn’t.

A Wells Fargo spokesman said, “Wells Fargo’s processes ensure that all note endorsements are done legally and appropriately, and we strongly dispute the conclusions in this case,” adding, “we are troubled by the additional comments about our general practices that are unsupported by the evidence.”

The judge’s ruling delves deeply into the work of Herman John Kennerty, who was deposed for this case by Franklin’s attorney, Linda Tirelli.

Drain casts a harsh eye on Kennerty’s statements about his work as a manager heading up a “default documents” department for Wells Fargo at the time of Franklin’s foreclosure.

Kennerty admitted to signing between 50 and 150 original documents each day related to administration and enforcement of Wells’ defaulted loans, according to the ruling.

Drain added: “Moreover, Mr. Kennerty’s testimony does not stop at describing manufactured mortgage assignments. He also testified that his ‘assignment team’s’ duties were not limited to processing assignments, including, when determined necessary, creating them; in addition, the ‘assignment team’ included people tasked with endorsing notes.”

The Post first reported on Franklin’s case in March 2014, when Tirelli alleged in court papers that Wells Fargo set up detailed internal procedures in a 150-page Wells Fargo Foreclosure Attorney Procedures Manual (created Nov. 9, 2011, and updated Feb 24, 2012) to fabricate foreclosure papers on demand. Wells Fargo denied the allegations.

Franklin told The Post, “I feel relieved … I’m hoping this case will help other people.”

She added, “Reading this opinion … it feels very calculated. It wasn’t like I was lost in the shuffle somehow. And you know, if someone writes me a check and they forget to sign it, I can’t cash it. If in my job I turn in paperwork and I forgot to check something or to write in a code, it’s kicked out. I don’t get paid. That’s how it works with everybody else.”

Wells Fargo has about two weeks to file a notice of appeal. The megabank lost this round, but the judge also made it clear that Franklin’s debt remains.

Drain’s ruling followed another major loss for Wells Fargo in a residential foreclosure case last week — and another smackdown, this time from a Missouri state court judge. This in turn comes after Wells Fargo and three other big banks were hit with a $2.7 million penalty to settle allegations of unlawful foreclosures in Massachusetts.

On Jan. 26, Judge R. Brent Elliott of Missouri’s 43rd Judicial Circuit awarded $2.9 million in punitive damages to a Missouri couple who spent years in limbo after Wells wrongfully foreclosed on their home. Wells sold it to Freddie Mac on Aug. 15, 2008, even after agreeing to a reinstatement of the loan following a disputed debt.

Elliott also blasted Wells Fargo for “outrageous and reprehensible” decisions and “deceptive and intentional conduct” that “displayed a complete and total disregard for the rights of David and Crystal Holm.

“Defendant Wells Fargo operated from a position of superiority provided by its enormous wealth,” Brent wrote in a blistering nine-page decision. “Wells Fargo’s decision took advantage of an obviously financially vulnerable family,” the judge continued, noting that Wells Fargo showed no evidence of remorse for the harm caused.

“In fact, the Court recalls the lack of remorse and humanity illustrated by a Wells Fargo corporate representative who testified, ‘I’m not here as a human being. I’m here as a representative of Wells Fargo,’?” the judge wrote.

The couple and their 12-year-old daughter got their home back, along with a total of $3.25 million in damages.

“We have modified more than 1 million mortgage loans and have forgiven $8.4 billion in principal since the beginning of 2009. There’s a lot more to this case than the decision reflects, and we have strong arguments to appeal the judgment and the unwarranted damages that were awarded,” a Wells Fargo spokesman said of the Missouri case.

 

Back to February 2015 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
spacer
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
 
BBB Logo

 

spacer
Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:


 

DVD Sets Only $99

 

FREE Mortgage Fraud Analysis

 

Order Cutting-Edge Services Now

 

Quiet Title Packages from Licensed Attorneys

 

Affiliate Services

 

CFLA Sponsored Attorney Links

 

Take-Home Education Package

 

ALB Law Firm

 

Advocate Legal

 

The True News Network

 

Sutton Law Firm, P.L.L.C.

 

Rubenstein Business Law

 

Atighechi Law Group

 

Scunziano & Associates

 

Get Certified to Perform Mortgage Securitization Audits

 

CFLA Training Academy

 

Expert Witness Services

 

Cutting Edge Expert Securitization Reports

 

CFLA Credit Cards

 

Breaking News

 

Letters to the Editor

 

CFLA Weekly Newsletters

 

Code of Ethics

 

Testimonials

 

Instructional Videos

 

Job Opportunities

 

License Opportunities

 

MARS Rule

 

Product Samples

 

Resource Links

 

Servicer Information

 

Foreclosure Laws

 

REST Report

 

Quiet Title Packages from Licensed Attorneys

 

Advertise on CFLA

 

Advertising Space: Mortgage Securitization, Quiet Title

 

Certified Forensic Loan Auditors, LLC
13101 West Washington Blvd.
Suite 444
Los Angeles, CA 90066

Phone: 832-932-3951
Toll Free: 888-758-CFLA (2352)
Mobile Users: CLICK TO CALL
info@certifiedforensicloanauditors.com

   
 
CFLA IS NOT A LAW FIRM AND DOES NOT PROVIDE ANY LEGAL ADVICE. CFLA DOES NOT OFFER FORECLOSURE CONSULTING OR FORECLOSURE RELIEF
SERVICES. CFLA DOES NOT OFFER OR ASSIST WITH ANY LOAN MODIFICATION SERVICE. CFLA ALWAYS RECOMMENDS THAT CLIENTS RETAIN COMPETENT COUNSEL IN THEIR RESPECTIVE JURISDICTION. CFLA HAS A FREE PROGRAM TO REFER CFLA CLIENTS TO LAW FIRMS IN NEARLY EVERY STATE AND CFLA
DOES NOT CHARGE OR OBTAIN REFERRALS FEES FOR THESE SERVICES. SERVICES NOT OFFERED TO RESIDENTS OF THE STATE OF NEVADA.

 
Home About Us Privacy Policy Terms of Service Disclaimer SERVICES Careers Contact Us
 
COPYRIGHT © 2007-2016 Certified Forensic Loan Auditors ™ All rights reserved