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REFEREE’S REPORT IN THIS FORECLOSURE ACTION RELIED UPON HEARSAY AND SHOULD NOT HAVE BEEN CONFIRMED (FIRST DEPT).

The First Department, reversing Supreme Court, determined the referee’s report should not have been relied upon in this foreclosure action because the report was based on hearsay:

The referee relied on an affidavit sworn to October 2, 2018 by an assistant vice president of plaintiff’s loan servicer, who asserted that, according to the books and records of plaintiff pertaining to defendant’s loan and payment history, defendant had been in default since March 1, 2009, and owed plaintiff the amount stated. However, because the books and records themselves were not submitted to the court, the affiant’s assertions are inadmissible hearsay … . Nor did the affiant lay a foundation for the introduction of the books and records as a business record (see CPLR 4518[a]). Deutsche Bank Natl. Trust Co. v Kirschenbaum, 2020 NY Slip Op 05849, First Dept 10-20-20

 

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