Judge Orders HSBC CEO To Explain "Frivolous" Foreclosure Motion

When HSBC failed to prove it even owned the Brooklyn home it was attempting to foreclose on, the judge in the case not only dismissed the bank’s foreclosure motion but also ordered the CEO of its North American division to give an in-person explanation of why he shouldn’t penalize HSBC for what he calls a “waste of judicial resources.”

According to the NY Daily News, HSBC provided robo-signed documents to the court as evidence that the loan had been transferred from the original, now-bankrupt lender to HSBC in 2007. The judge called the paperwork “replete with false statements” and wants to hear from bank biggie Irene Dorner on July 15.

Since the NY State Chief Judge issued new regulations requiring lenders to review the legitimacy and accuracy of all the documents they submit, a number of foreclosure cases have been dismissed outright by lenders that are only able to provide questionable or incomplete paperwork.

A rep for HSBC tells the NY Daily News that the bank is “reviewing the court papers” and that its role “was limited to that of a trustee… [HSBC] did not service this loan and neither prepared or filed any of the legal documents presented to the court.”

Supreme Court Justice Schack hits HSBC for ‘frivolous motion’ in foreclosure, asks boss to explain [NY Daily News]