Judge sends harsh message to banks and bureaucrats
A New York judge’s ruling to deny mortgage foreclosure sends a message to banks and bureaucrats. In a recent blog Felix Salmon of Reuters outlines the judgment Indymac v Yano-Hiroski making Judge Jeffrey Spinner of Suffolk county The Hero of the Day.
“If wishes were horses, beggars would ride.” Harsh sentiments indeed, but that statement describes nicely how federally mandated orders for banks to modify loans and reduce foreclosures have been ignored. Recent headlines screamed to readers that the United States Treasury Department's Assistant Secretary for Financial Institutions has now concluded, "The banks are not doing a good enough job" and that “some of the firms ought to be embarrassed, and they will be."
The statistics and reporting data bear out the good secretary’s accusations. Out of 500,000 loan modifications, less than 2000 have secured "permanent" status under the Obama Administration loan modification policies and regulations. Based on those odds of success, about one in 250, many people would see a greater chance of success in Atlantic City or Vegas.
But why should we be so pessimistic? After all, White House dignitaries, Secretary's of our Federal Government and chief financial officers and economists are all in agreement that these results are not acceptable. Now that we have this consensus and agreement, where is the written order to modify and stop foreclosure? Look no further than your own backyard.
New York Judge Jeffrey Spinner's decision in the Suffolk County Supreme Court on November 19, 2009, reciting standards reported more than 100 years ago, denied access to foreclose to a lender. This ruling is not a 3 month trial plan; not a trail of unanswered phone calls nor nameless lender representatives taking our calls. This ruling says, without question, “Come into our court with knowledge of the families and clients you have permitted to borrow money against their homes and in each and every case, you must work in "good conscience and justice." Can you imagine if only our elected officials in the highest offices throughout our land read this decision. Maybe this wish will be granted and we should all learn to ride.
