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.

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Opinion can be read in full here…