New York's lawyers are about to become the Empire State's de facto filter against mortgage foreclosure proceedings based on faulty bank documentation.
A new court rule, announced yesterday, will require lenders' lawyers in foreclosure proceedings to personally certify the accuracy of the documentation relied upon in foreclosure proceedings.
New York Times reports:
The chief judge of New York’s courts implemented a new rule Wednesday requiring every lawyer handling a foreclosure to sign a form verifying that all paperwork in the case is accurate.
...Lawyers already have an obligation to ensure that the documents they present to the court are valid, but New York Chief Judge Jonathan Lippman said having them sign a document affirming that all papers received a proper review will hold them accountable as never before.
...The rule applies to both new cases and the 78,000 foreclosure actions already under way in New York courts.
Lawyers handling pending foreclosure actions will probably need to go back to their clients and verify that all proper steps were followed, the judge said. The form, which is being created by the court, requires lawyers to give the name of the bank employee who affirmed that the records were accurate and the date the conversation took place.
In related news that highlights the deep potential of widespread clouds on title in the wake of the American foreclosure mess, Washington Post reports:
The country's largest title insurer said Wednesday that banks and other lenders must vouch for the accuracy of their mortgage documents before the firm will write insurance for a foreclosure sale.
- Garry J. Wise, Toronto
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