Since the beginning of the mortgage meltdown one judge has understood the scam. For reasons that are probably not difficult to figure out, Judge Shack’s opinions and rulings have been largely ignored across the country despite the fact that he is supported by virtually every academic source that has reviewed his decisions. The academic legal community clearly finds that Judge Shack knows what he’s talking about. And what he’s talking about is fraud. And the fraud he is talking about has nothing to do with mortgage brokers and originators and everything to do with the megabanks.
Plaintiff CHASE, as will be explained, never owned the subject BUTLER mortgage and note. Therefore, CHASE had no right to foreclose on the subject mortgage and note. Moreover, the continued subterfuge by CHASE and its counsel to the Special Referee and Court that it owned the subject BUTLER mortgage and note demonstrated “bad faith” in violation of CPLR Rule 3408 (f), which requires that “[b]oth the plaintiff and defendant shall negotiate in good faith to reach a mutually agreeable resolution, including a loan modification, if possible.”
This case is troubling because various counsel for CHASE falsely claimed for almost two years, from January 20, 2010 until December 2011, that CHASE was the owner of the mortgage and note. Ultimately, in late 2011, after the subject mortgage had been satisfied, plaintiff CHASE’s counsel admitted, in opposition to defendant BUTLER’s October 26,
JP Morgan Chase Bank, Natl. Assn. v Butler (2013 NY Slip Op 51050(U)) Page 4 of 24
2011 order to show cause, that plaintiff CHASE did not own the BUTLER mortgage and note, but only the servicing rights to it. CHASE’s counsel, in its opposition papers, submitted an affidavit, dated December 9, 2011, from Greg De Castro, “Director- Servicing Management” of FANNIE MAE, claiming that FANNIE MAE acquired from WAMU the BUTLER Mortgage and Note and “Chase is the servicer of the loan.” Further, Mr. De Castro makes the ludicrous claim, in violation of New York law, that “[a]s Fannie Mae’s servicer, CHASE has authority to commence a foreclosure action on the Loan and to receive and/or collect the proceeds from the sale of the Property.”