CREATING PROSPERITY
personally reviewed plaintiff’s documents and
In Your Town or Village
By Attorney Carl E. Person
(2010 Candidate for NYS Attorney General)
NEW YORK COURTS ENACT A “JUDI-
CIAL STATUTE” TO ROOT OUT ALL
FRAUDULENT NYS FORECLOSURES
Let me start off by saying that on October 20,
2010 the Chief Administrative Judge of the New
York Courts wrote and published a form of affirma-
tion for each foreclosing bank’s lawyer to sign and
file swearing under the penalties of perjury that as to
that specified case the lawyer and its law firm fol-
lowed the rules for foreclosures in New York.
The Form of Affirmation
The form of affirmation starts off with an expla-
natory paragraph and is followed by 4 numbered pa-
ragraphs, as follows:
N.B.: During and after August 2010, numerous
and widespread insufficiencies in foreclosure fil-
ings in various courts around the nation were re-
ported by major mortgage lenders and other au-
thorities. These insufficiencies include: failure of
plaintiffs and their counsel to review documents
and files to establish standing and other foreclo-
sure requisites; filing of notarized affidavits
which falsely attest to such review and to other
critical facts in the foreclosure process; and “ro-
bosignature” of documents by parties and coun-
sel. The wrongful filing and prosecution of forec-
losure proceedings which are discovered to suffer
from these defects may be cause for disciplinary
and other sanctions upon participating counsel.
***
_________________, Esq., pursuant to CPLR
§2106 and under the penalties of perjury, affirms
as follows:
1. I am an attorney at law duly licensed to prac-
tice in the state of New York and am affiliated
with the Law Firm of
_________________________, the attorneys of
record for Plaintiff in the above-captioned mort-
gage foreclosure action. As such, I am fully
aware of the underlying action, as well as the pro-
ceedings had herein.
2. On the date of _____________, I communi-
cated with [name and title:]
____________________, a representative of
Plaintiff, who informed me that he/she (a) has
records relating to this case; (b) has reviewed the
Summons and Complaint, and all other papers
filed in this matter in support of foreclosure; and
(c) has confirmed both the factual accuracy of
these court filings and the accuracy of the notari-
zations contained therein.
3. Based upon my communication with [person
specified in ¶2]: ____________________, as well
as upon my own inspection of the papers filed
with the Court and other diligent inquiry, I certify
that, to the best of my knowledge, information,
and belief, the Summons and Complaint and all
other documents filed in support of this action for
foreclosure are complete and accurate in all rele-
vant respects. I understand my continuing obliga-
tion to amend this Affirmation in light of newly
discovered facts following its filing.
4. I understand that the Court will rely on this
Affirmation in considering the application.
A “Judicial Statute” with
$ Trillion National Ramifications -
Prevents Banks from Collecting
Usurious Interest Charged on Mortgage Loans
I take off my hat to the New York Judiciary, and
especially to Chief Judge Jonathan Lippman, the Pre-
siding Justices of the four Appellate Divisions (Hon.
Luis A. Gonzalez – 1st Dept., Hon. A. Gail Prudenti –
2nd Dept., Hon. Anthony Cardona – 3rd Dept., and
Hon. Henry J. Scudder – 4th Dept.) and Chief Ad-
ministrative Judge Ann T. Pfau. They have led the
way to the needed reform that the New York Legisla-
ture, the legislatures of all other states (I suspect) and
Congress have failed to enact.
This is why I call the Chief Administrative
Judge’s “Administrative Order” AO/548/10 a
“Judicial Statute”. New York’s top judges by a court
order have been able, hopefully, to create a solution
for the mortgage mess which is destroying the econ-
omy and families, and threatening to turn America’s
homeowners into renters.
Also, without realizing it, they have created a way
for states to indirectly enforce their laws prohibiting
usury. [In an earlier column, I explained how 3 U.S.
Supreme Court decisions have given the right to na-
tional banks and credit card companies based in De-
laware and South Dakota – states which do not pro-
hibit usury – to lawfully sell their usurious mortgages
and credit card loans to residents of the 48 other
states which prohibit usury. By their Administrative
Order, the New York judges are preventing the banks
from obtaining their usurious interest because of their
failure to abide by the New York foreclosure rules. I
call this order a “Judicial Statute” which is a term I
have coined for this article, hopefully to attract atten-
tion to the article.
Importance and Effect of the Order
The importance of the Administrative Order can
also be estimated by recognizing that the New York
judges have done what President Obama promised
but could not deliver. The effect of the Administra-
tive Order will be to prevent the banks from foreclos-
ing and selling a substantial number of their invento-
ry of home mortgages because of their willful de-
struction of the original notes and mortgages, their
resale of shares of mortgage interests to make it im-
possible for the owners to be represented in court,
and the related mortgage foreclosure fraud involving
false affidavits.
What Can the Banks Do?
What the banks will have to do in a substantial
number of their New York mortgages is reach a set-
tlement with the homeowner called a “Loan Modifi-
cation Agreement”, to reduce the principal amount of
the loan and the monthly payment, so that the mort-
gage becomes affordable to the homeowner and re-
flects the reduced value of the mortgaged property.
Through substantial granting of Loan Modification
Agreements, the banks will be able to eliminate the
fraudulent foreclosure action and its consequences,
keep millions of homeowners in their homes with
affordable mortgages, make the mortgages perform-
ing and valuable assets on the books of the banks
(although at a reduced principal amount), and change
the present direction of turning homeowners into
renters and banks into ownership of most homes in
the U.S.
If the banks do not enter into Loan Modification
Agreements, the banks and their attorneys would run
the risk of being barred from use of the New York
courts (as to the banks) and disbarment or other sanc-
tion (as to the attorneys). I hope that the banks do not
abandon their attorneys because of the trillions of
dollars that may be involved.
National Implications – Including
Enactment of Judicial Foreclosure Laws
in the 27 Non-Judicial Foreclosure States
New York is showing the 22 other “judicial forec-
losure states” what they should be doing. It also
should be sending a message to the other 27 states
(which do not require home foreclosures to take place
in the courts) to enact statutes similar to the statutes
of New York and Florida requiring foreclosures to
take place through court action, with the result that
foreclosures would be slowed down (for the benefit
of the state and its residents) and fraud could be more
readily handled, as New York is now doing with the
Administrative Order.
I Might Be Able to Take
Some Credit for this Reform
I would like to say that I caused or helped to
cause this great event for New York homeowners (of
the issuance of the Administrative Order dated Octo-
ber 20, 2010). I’ll tell you what I know and let you
conclude for yourself whether I can take any credit
for helping resolve (it does appear) the nation’s
mortgage mess. Here are the facts:
1. I am a very active foreclosure defense lawyer
with more than 50 related videos on YouTube.
2. The Administrative Order is dated October 20,
2010.
3. I was a candidate for NYS Attorney General
and on the ballot (with 3 other candidates) as of Au-
gust 17, 2010.
4. On October 10, 2010, I issued a press release
entitled “ANDREW CUOMO, AS HUD SECRE-
TARY, HELPED TO CREATE THE MORTGAGE
FRAUD, AND PREDICTABLY HAS DONE
NOTHING TO STOP THE BANKS FROM USING
FALSE AFFIDAVITS. In my release I stated:
Person also stated that "Cuomo should have
recused himself and let someone else in his
Office of New York State Attorney General
be assigned the responsibility for ensuring that
mortgage foreclosure fraud is stopped in
NYS."
Person went on to say that the banks, servic-
ing companies, and other participants in the il-
legal activities should be penalized by not be-
ing able to use the New York courts to com-
mence or pursue any foreclosure actions in
New York State as to any residential mortgag-
es, and that the banks should not be able to as-
sign the residential mortgages to anyone else
for the purpose of starting foreclosure pro-
ceedings in New York State.
What needs to be done, according to Person,
"is to require the banks to enter into modifica-
tion agreements with residential homeowners
decreasing the monthly payment to the current
low mortgage rate of 4.5% or so and decreas-
ing the principal amount of the loan to 90% of
the present value of the property." As to each
property for which this takes place, the bank
 would then be able to enforce the modified My column seeks to help towns, villages, mu-
mortgage in the New York courts. nicipalities and their residents and small businesses
create their own prosperity through local initiative –
5. The Administrative Order does, in effect, what
separate and apart from whatever federal or state
I had suggested in my press release dated October
governments also may be trying to do. I am seeking
10th.
to set up town hall meetings to explain specifically
6. The present NY Attorney General (Andrew how a town or village can create prosperity for itself.
Cuomo) lives and works in Manhattan. Please call me at 212-307-4444 to discuss time, date,
place and advance publicity. See my website carlper-
7. The Attorney General elect (Eric T. Schnei- son4NYAG.com for additional information.
derman) lives and works in Manhattan, and as a State
Senator represents part of Manhattan.
Past Columns:
8. I, a third-party candidate for NYS Attorney ● Creating Prosperity Is Not a Proper Governmental
General live and work in Manhattan. Function
● Meet Mr. Vig – Who Is Destroying the Economy
9. My press release was posted on my campaign ● Why Bank Branches Proliferate in a Declining
website – carlperson.org on October 10, 2010 [and is Economy
still there for you to see]. [archived at carlperson.com/creatingprosperity.php]
10. Each of the 4 candidates for NYS Attorney
General was familiar with the names and websites of Future Columns:
the other 3 candidates.
● Increasing Home Values by 20% In Your Area
11. A major political issue in the United States ● Creating 20% More Jobs In Your Community
during October, 2010 was the nation’s foreclosure ● Creating a Tuition-Free Equivalency College
problem, in which candidates for office and govern- ● $15,000/Year Extra Income for Each Family
ment officials were seeking a solution. ● Your Town/Village Operates as a Company Store
12. One of the Presiding Justices, a Republican, ● Why Politics & Politicians Can’t Fix the Economy
was running for re-election (and won) and presuma-
bly was following the election campaigns for Gover- Copyright © 2010 by Carl E. Person
nor and Attorney General and saw or heard about my
press release or the substance of my idea quoted
above. [I’m only trying to show in one way the idea
in my press release might have reached the judges
who have had the wisdom to do what they did. There
is no wrongdoing in adopting an idea, if this occurred
at all.]
13. No other court in the United States or legisla-
ture has apparently implemented any such order or
rule, or at least I am unaware of any similar order,
rule or statute. The New York Courts issued a press
release dated October 20, 2010 entitled “New York
Courts First in Country to Institute Filing Require-
ment to Preserve Integrity of Foreclosure Process”.
In Summary
I would like to think that someone is reading or
learning about what I write, especially when it cen-
ters on the economic disaster of removing tens of
millions of Americans from their homes through fo-
reclosures, and turning over their homes to the
world’s banks, which created the economic problem
in the first place.
Carl E. Person, 11/12/10