Judge fines HSBC in foreclosure case

A New York Supreme Court judge imposed a $10,000 fine on HSBC and a $5000 sanction on a law firm in a foreclosure case. The judge was the same judge that threatened Irene Dorner, head of HSBC USA, back in July. Dorner was ordered to appear in court.

The judge did not fine HSBC USA CEO Irene M. Dorner, whom he had ordered to appear in a hearing July 15 to justify why he should not sanction her or the bank. Typical of HSBC, Dorner did not appear. She sent an attorney instead.

Justice Arthur M. Schack sanctioned HSBC USA, a U. S. subsidiary of London-based HSBC Holdings Plc, citing the bank’s “waste of judicial resources” in continuing a foreclosure action “with all of its defects.”

The judge cited robo-signing, lack of clear authority, and he accused the bank of asserting “material factual statements that are false”. HSBC seemed to support the judge’s position when a bank spokesperson said HSBC should not be blamed because it did not handle the loan but was only responsible for administering the mortgage investment trust that included the loan.