Appellate Ruling Dooms CPLR 3408
In reversing Justice Jeffrey Spinner in IndyMac Bank, F.S.B. v. Yano-Horoski, 17926/05, the Appellate Division, Second Department has obliviated (see Harry Potter1) CPLR 3408 requiring mandatory settlement conferences ("Panel Upsets Ruling That Cancelled Mortgage," NYLJ, Nov. 22) The appellate division has now provided ammunition to all lenders not to attempt any modification of mortgages since, as the court stated, "The reasoning of the Supreme Court that its equitable powers included the authority to cancel the mortgage and note was erroneous, since there was no acceptable basis for relieving the homeowner of her contractual obligations to the bank." Now, all lenders will argue that there is never an acceptable basis for relieving a homeowner of its "contractual obligations" and thus, the lenders can refuse to modify any loans.
This article has been archived, and is no longer available on this website.
Not a LexisNexis® Subscriber?
LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via lexis.com® and Nexis®. This includes content from The National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.
ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.
For questions call 1-877-256-2472 or contact us at email@example.com