NY Federal Judge Slams Wells Fargo for Forged Mortgage Docs

Wells Fargo

NY Federal Judge Slams Wells Fargo for Forged Mortgage Docs

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.

More from the NY Post here…

Opinion can be read in full here…

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4closureFraud.org

Comments
17 Responses to “NY Federal Judge Slams Wells Fargo for Forged Mortgage Docs”
  1. Mary says:

    Fraud by banks including fraudulent documents welcome in Bergen county superior court
    of judge Edward a jerjian that refuse to acknowledge evidence and facts submitted by litigant homeowners that fight to save their home. judge Edward a jerijan does not understand MBS
    securitization and will rule against any and all homeowners in favor of the banks ,even while
    having full knowledge that the banks documents are 100%fraud

  2. GREG says:

    judge Gerald escala work with the banks and let them steal people homes with fraudulent documents he is the most corrupt judge in NJ now days

    • Talktotemnessee says:

      The general consensus is courts support the lenders as a rule. Their overall opinion is that YOU owe money that you borrowed regardless of how predatory or unethical the lender was or uncooperative in modifying a blatantly immoral loan that failed all legal criteria or recording statutes. Justice has become a laugh in our legal system in both civil and criminal courts. Most people never know they have lost legal access to justice until it hits them directly.

  3. talktotennessee says:

    I completed 6 packets for Wells Fargo and still they wanted more. I finally gave up. I even had an attorney and he did nothing to stop the run around. WF didn’t intend modifying the loan. I believe it was because they never had the authority to do sol These loans are cut up on so many pieces, the truth is they don’t even know who owns what or who can make a decision with any clout. If FNMA has a hand in it you might as well not waste your time filling out their forms. They have NO intention of modifying your loan!

  4. Diana says:

    Wells Fargo did the same to us so we then tried to save our home from foreclosure by doing a loan modification with Wells Fargo. That was a joke and we even had tried getting help Hope hotline to help us talk to them and nothing ever came of it. Had to do a chapter 13 Bankruptcy in order to save and keep our home. My husband had his hours at work cut and we were losing $1000 a month in wages for over 2013 and we didn’t fill out the paper work right even with Justin our loan person help and so they pushed for foreclosure on our home. Bankruptcy allowed us to stay in our home and they allow Loan modification during the Chapter 13. We are hoping that we can do a loan modification soon. But we still have our home and are very thanful for that.

  5. JNG says:

    foreclosure judge Escala of Bergen county is incompetent judge all he does is rubber stamp foreclosures for the banks regardless if the own the mortgage note or not.

  6. hombre says:

    judge Gerald escala from Bergen county don’t care a bout bank frauds he hands over homes to any bankster that file for foreclosure in his court room

    • Lynn says:

      Yes just like the Judge I had in Morris County NJ. Funny he wouldn’t even let us go to the discovery phase. Just dismissed me like I was nothing. Judge Hansbury real peach of a man….

  7. talktotennessee says:

    One link led to the main article in the Post but nothing to the Court’s opinion. Plus I replied to a comment that was deleted, just curious why. No objective language so wondering.

  8. JJ says:

    The link in your article to the opinion does not link to the opinion .. where is the opinion ?? Can you direct us to the opinion .. or fix the link in your article please.

  9. WF has been doing this for years and when caught redlining, predatory lending they just put a few bucks in someone’s coffer and move on business as usual because this is what the system does to buy out of their troubles. There will be no criminal charges in fraud or forgery cases because there is NO MONEY in it for the victims or their lawyers. As they always say, “FOLLOW THE MONEY.” and you will see the slap on the wrist recoveries but NO ONE goes down for criminal offenses. Memphis, Shelby County sued WF in federal court and the county and lawyers walked away with a few dollars but victims got nothing but a nod and a promise. DONE DEAL. Read about it in Circuit 6, Judge Tom Anderson’s court.
    My thinking is this, IF corporations are people and the SCOTUS claims THEY ARE PERSONS for purposes of campaign contributions, then they are PERSONS for criminal charges of fraud, forgery and misrepresentation that lead to loss. Restitution needs to be to the victims and their legal teams because the victims have no money to pursue in civil court. If they did they would not be in these dire straits.

  10. Alabama John says:

    How many were sent to federal prison?

    Under the Sarbanes-Oxley law, Any one whose downline commits a Federal crime, the upline(s) are (is) also responsible and goes to prison for aiding and abetting in the presenting of a false report to a Federally insured bank or Institution. It should apply to a bank submitting false reports to anything Federal, especially Federal Court, Jury and Judge even more so.

    Start locking the forgers and their upline managers up and the forged documents will go away fast.

    Will help in easing the Federal court time burden too.

  11. You gotta love Judge Drain. He doesn’t pull any punches when it comes to foreclosure fraud. I have seen him in action. The Law Offices Of Steven W. Stutman Orange, Rockland, Westchester.

  12. Lynn says:

    Didn’t work in NJ. I was shot down so fast, my head is still spinning a year and a half later. Did not even make it past the hearing

    • Yes, I once owned property that had a predatory loan with gross document problems. I sued and failed to get them to even modify the loan. Few success stories because those of us in trouble seldom have financial resources to fight deep pockets. As you can see in this case WF will appeal and literally wear out those involved, costing a fortune on appeal. They literally beat you to pieces despite obvious fraud. Many of the courts take the position that if you owe the money, ANYTHING the banks do to collect is ‘fair.’ When you read the case listed here you see the Court said as much, just read the fine print. In the appeal it is most likely WF will pull the magic rabbit out of the hat!

    • RICHARD PERRY PRATT says:

      LYNN, I WENT THROUGH THE SAME PROCESS AS YOU AND I’M S RIGGEDSTILL SUFFERING !
      THE SYSTEM IS RIGGED, THE JUDGES AND LAWYERS ARE WHORES FOR THE
      CORPORATIONS, THEREFORE WE LOSE !!

      • Lynn says:

        I lost everything!! I couldn’t even appeal because I just didn’t have the funds to do it. This Judge Hansbury is one of the most unfeeling pieces of crap I have ever come across…

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