In news on the housing crisis, the Florida Supreme Court heard arguments Thursday in a major case that could reverse hundreds of thousands of foreclosures and allow severe financial penalties against banks in one of the states hardest hit by foreclosure fraud. The lawsuit, Pino v. Bank of New York Mellon, stems from the widespread practice of “robo-signing,” where foreclosure documents are rapidly signed without proper vetting. At issue is whether banks that file fraudulent documents can simply dismiss a foreclosure case, then refile it later with new paperwork. The case could have national ramifications since voluntary dismissal is a main bank tactic for mortgage fraud allegations in the more than two dozen states requiring judicial approval for foreclosures.
Florida Supreme Court Weighs Key Foreclosure Case
HeadlineMay 11, 2012