You are here: / / Sanction for Failure to Negotiate in Good Faith Under Subprime Mortgage...
,

Sanction for Failure to Negotiate in Good Faith Under Subprime Mortgage Laws Violated Contract Clause

Under CPLR 3408 (one of the Subprime Residential Loan and Foreclosure Laws enacted in response to the “subprime mortgage crisis”) settlement conferences between the bank and the homeowner are made mandatory.  The statute requires that the parties negotiate “in good faith to reach a mutually agreeable resolution, including a loan modification, if possible”… .  In this case, Supreme Court determined the bank had not negotiated in good faith.  As a sanction, Supreme Court compelled “specific performance of the original modification agreement” proposed by the bank at the outset of the settlement conference.  In a full-fledged opinion by Justice Dickerson, the Second Department, after describing the sanctions imposed in other cases, determined that the sanction in this case amounted to the Court’s rewriting the mortgage in violation of the Contract Clause and the bank’s due process rights.  Justice Dickerson wrote:

 …[T]the Supreme Court’s interpretation of CPLR 3408(f) as authorizing it to, in effect, rewrite the mortgage and loan agreement would violate the Contract Clause of the United States Constitution …. * * *In addition, the Supreme Court’s determination violated [the bank’s] due process rights. [The bank] was not on notice that the Supreme Court was considering a remedy such as the imposition of the terms of the modification proposal on a permanent basis… . Wells Fargo Bank, NA v Meyers, 2013 NY Slip Op 03085, 2nd Dept, 5-1-13

 

You might also like
ALTHOUGH THERE IS MERIT TO THE DEFENDANTS’ ARGUMENT THEY WERE DEPRIVED OF THEIR PROPERTY WITHOUT JUST COMPENSATION IN THESE TAX FORECLOSURE PROCEEDINGS WHERE THEIR PROPERTIES WERE TRANSFERRED TO NEIGHBORHOOD RESTORE UNDER NYC’S THIRD PARTY TRANSFER PROGRAM, THE DEFENDANTS’ FAILURE TO ANSWER IN THE TAX FORECLOSURE ACTIONS AND THEIR FAILURE TO REDEEM WITHIN FOUR MONTHS PRECLUDED ANY RECOVERY (SECOND DEPT).
Family Court Should Not Have Denied Child’s Motion for the Issuance of an Order Making Specific Findings that Would Allow Her to Petition for Special Juvenile Immigrant Status
ALTHOUGH THE RPAPL 1304 NOTICE OF FORECLOSURE COMPLIED WITH THE STATUTE WHEN IT WAS SENT, IT DID NOT COMPLY WITH THE VERSION OF THE STATUTE IN EFFECT WHEN THE ACTION WAS COMMENCED; PLAINTIFF’S SUMMARY JUDGMENT MOTION SHOULD HAVE BEEN DENIED (SECOND DEPT).
A LETTER INDICATING THE DEBT WOULD BE ACCELERATED IF THE ARREARS WERE NOT PAID DID NOT SERVE TO ACCELERATE THE DEBT IN THIS FORECLOSURE ACTION; DEFENDANT DID NOT DEMONSTRATE THE BANK FAILED TO COMPLY WITH THE NOTICE REQUIREMENTS OF RPAPL 1304 (SECOND DEPT).
HOMEOWNER WAIVED THE DEFENSE OF LACK OF PERSONAL JURISDICTION, JUDGE SHOULD NOT HAVE, SUA SPONTE, DISMISSED THE FORECLOSURE ACTION ON THAT GROUND (SECOND DEPT).
DEFENDANT WAS NOT INFORMED OF THE DEPORTATION CONSEQUENCES OF HIS GUILTY PLEA, MATTER REMITTED, PROCEDURE ON REMITTAL EXPLAINED.
In Court Stipulation Was Valid Postnuptial Agreement; DRL 236(B)(3) Did Not Apply
CROSS MOTION TO COMPEL ACCEPTANCE OF A LATE ANSWER PROPERLY GRANTED (SECOND DEPT).

Categories

Sign Up for the Mailing List to Be Notified When the Site Is Updated.

  • This field is for validation purposes and should be left unchanged.

Copyright © 2025 New York Appellate Digest, Inc.
Site by CurlyHost | Privacy Policy

Joint Custody Inappropriate Where Parents Can Not Cooperate​ Evidence of Physical Injury (re Assault) Insufficient