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MERS Crashes and Burns Again

By Bob Hurt - http://bobhurt.com

Judge Schack gave the Plaintiff MERS plenty of time (45 days) to provide affidavits (the rope with which to hang the Plaintiff) and received it 335 days later, after the Plaintiff’s bank had transferred the non-performing loan to another bank, which had no standing.  When you look at the original issue, you find that the Defendants defaulted, and did not show up for the proceeding.  But Judge Schack found numerous glaring irregularities, such as a missing affidavit of facts to support the request for default judgment, missing affidavit accompanying the note and mortgage ( Plaintiff submitted a computer printout as evidence of holder status), lack of proof that the Nominee/Plaintiff’s principal knew about and approved of the foreclosure, and the fact that one person acted as a principal of both MERS and the bank, an apparent conflict of interest.

So, the judge ordered the termination of the lis pendens and dismissed the foreclosure complaint with prejudice.

In my June 3, 2008 decision and order in this matter, I granted leave to plaintiff, THE BANK OF NEW YORK, AS TRUSTEE FOR THE CERTIFICATEHOLDERS CWALT, INC. ALTERNATIVE LOAN TRUST 2006-OC1 MORTGAGE PASS-THROUGH CERTIFICATES, [*2]SERIES 2006-OC1 (BNY), to renew its application for an order of reference within forty-five (45) days, until July 18, 2008, if it complied with three conditions. However, plaintiff did not make the instant motion until May 4, 2009, 335 days after June 3, 2008, and failed to offer any excuse for its lateness. Therefore, the instant motion is 290 days, almost ten months, late. Further, the instant renewed motion failed to present the three affidavits that this Court ordered plaintiff BNY to present with its renewed motion for an order of reference: (1) an affidavit of facts either by an officer of plaintiff BNY or someone with a valid power of attorney from plaintiff BNY and personal knowledge of the facts; (2) an affidavit from Ely Harless describing his employment history for the past three years, because Mr. Harless assigned the instant mortgage as Vice President of MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. (MERS) and then executed an affidavit of merit for assignee BNY as Vice President of BNY’s alleged attorney-in-fact without any power of attorney; and, (3) an affidavit from an officer of plaintiff BNY explaining why it purchased the instant nonperforming loan from MERS, as nominee for DECISION ONE MORTGAGE COMPANY, LLC (DECISION ONE).

Moreover, after I reviewed the papers filed with this renewed motion for an order of reference and searched the Automated City Register Information System (ACRIS) website of the Office of the City Register, New York City Department of Finance, I discovered that plaintiff BNY lacked standing to pursue the instant action for numerous reasons. Therefore, the instant action is dismissed with prejudice.

Supreme Court, Kings County

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