Supreme Court Justice Schack hits HSBC for ‘frivolous motion’ in foreclosure, asks boss to explain

A Brooklyn judge has ordered the head of one of the nation’s biggest banks to appear in court and explain why it should not be penalized for submitting false documents in a foreclosure case.

In a scathing decision issued Friday, Supreme Court Justice Arthur Schack dismissed HSBC’s case against Bedford-Stuyvesant homeowner Ellen Tahrer as a “frivolous motion” and a “waste of judicial resources.”

The bank failed to prove it even owned the $475,000 mortgage on Tahrer’s home, Schack ruled. Instead, its lawyers submitted documents from several notorious “robo-signers,” all of which claimed the original loan had been transferred to HSBC from Delta Funding Corp., the original lender, which declared bankruptcy in 2007.

Those documents were “replete with false statements,” Schack ruled. He ordered the British bank’s North American CEO, Irene Dorner, to appear July 15 to explain.

Tahrer, 55, the delinquent homeowner, still lives in the two-story home and had no idea what had happened with her case.

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Full ruling below…

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4closureFraud.org

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HSBC Bank USA, N.A. v Taher