Judge Punishes Bank For Unfair Mortgage Agreement
May 14, 2010
Justice Spinner of Suffolk County New York has taken Immigrant Savings Bank to task for refusing to engage in good faith settlement conferences required by a 2008 amendment to the New York Banking Law.
Judge Spinner has ordered Immigrant Mortgage Company to pay a Huntington New York couple a $100,000 as compensation for the banks “deplorable” mortgage agreement and its bad faith foreclosure negotiations.
In his decision Judge Spinner stated “the court…determines that the imposition of exemplary damages upon (the plaintiff bank) is equitable, necessary, and appropriate in light of plaintiff’s shockingly inequitable, bad faith conduct, as well as to serve as an appropriate deterrent to any future outrageous, improper and wrongful activities”. His decision was in the case of Immigrant Mortgage Company v. Corcione, Q009/28917.
In addition Justice Spinner has also “forever barred” Immigrant from collecting interest on the $302,500 mortgage as well as any legal fees, cost “or any sums other then the principal balance”.
In their lawsuit defendants Jane Corcione and Anthony Corcione claimed that Immigrant refused to engage in good faith settlement conferences, as explicitly required by the 2008 amendment to the banking law.
The judge singled out in his decision a half a dozen of the mortgage agreements “deplorable” and “distressing” provisions. One of the provisions singled out by Judge Spinner was a clause which forever prohibited the Corcione’s from seeking protection under the United States Bankruptcy Code. In his decision Judge Spinner stated that if this clause was enforceable against the Corcione’s it would be able to preempt federal insolvency statutes. Judge Spinner’s decision stated that a pre-bankruptcy waiver should under no circumstances be enforced against consumer debtors. His decision found the waiver was unconscionable, unreasonable, over reaching and absolutely void as against public policy.
Judge Spinner criticized the mortgage agreements “general release” which discharged the bank from any potential liability in “any and all claims that are relating to, concerning, or underlying the loan, and brokering, closing, servicing, or administration of the loan.” Justice Spinner’s decision stated “the obvious and factually clear intent of this clause is to circumvent each and every state and federal law in the State of New York intended to regulate the mortgage banking industry.”
This decision by Justice Spinner is the third time he has sanctioned a mortgage lender for its conduct in a foreclosure proceeding. Justice Spinner is the presiding judge in Suffolk County Residential Mortgage Foreclosure Conference Part. Suffolk County has the most foreclosure cases pending in the State of New York.
Should you find yourself facing a foreclosure on your home contact the foreclosure defense attorneys at the Law Office of Elliot Schlissel. We have more than 30 years experience in defending lawsuits by creditors. Call us at 1-800-344-6431 or send us an email.
Picture courtesy of desparateexes.com.