Aurora Loan Services - Lehman Brothers Bank Lehman Brothers Bank wholly owned subsidiary act as each others alter egos. Aurora's pattern of obtaining illicit default judgments after commencing foreclosure actions without standing to sue, in violation of New York's Subprime Lending Reform law. brooklyn, New York

I was the defendant in one of two published cases (Aurora v. Sattar, 17 Misc.3d 1109 (2007) Aurora Loan Services v. Grant, 17 Misc.3d 1102(A), 851 N.Y.S.2d 56 (N.Y.Sup. 08/29/2007)), in which Aurora Loan Services started a foreclosure action, in spite of the fact that they were neither my mortgage company nor an assignee of the mortgage, and therefore had no right to sue.  Solely, by virtue of the fact that I am myself an attorney, I managed to get the case dismissed, grudgingly, by a clearly hostile judge.  I have now learned, however, that Aurora has started several hundred additional foreclosure actions in which they similarly had no right to sue, and apparently won the cases through illicitly obtained default judgments against homeowners who did not realize that Aurora had no standing to sue. 

This practice of debt collectors of subprime lenders bringing illicit foreclosure actions without authority to do so was recently explicitly banned in New York State by passage of the Subprime Lending Reform law.  The new law modifies Section 1302 of the Real Property Actions and Proceedings Law (“RPAPL”) and requires subprime lenders and their debt collectors to register with the New York State Banking Department and affirmatively demonstrate in foreclosure actions that they are in fact the holder or assignee of the underlying mortgage and note, and that they have the right to bring the action.  The Subprime Lending Reform law also makes its violation potentially criminal under Section 187 of the Penal Code. 

In spite of the new law, every agency and elected official that I have notified has refused to act upon or even investigate the allegations against Aurora Loan Services.  I have presented the facts to the U.S. Office of Thrift Supervision, the U.S. Attorney for the Eastern District of New York, the New York State Governor and Attorney General’s Office, the Brooklyn District Attorney and Senators Schumer and Menendes’ Offices. The Village Voice even ran an exposee on Aurora, “Wall Streetwalkers: The Sleazy Lehman Brothers Subsidiary,” Villiage Voice, Nov. 5, 2008. As in the case of the Securities Exchange Commission turning a deaf ear to complaints about Bernie Maddoff and the opportunity to prevent his bilking millions of additional dollars from the public, however, each of these elected and appointed officials have failed to address the allegations against Aurora.

Some have speculated that former Attorney General Eliot Spitzer’s getting caught and his ultimate downfall were the result of a set up in retaliation for his having gone after the subprime lending industry.  The elected officials may be declining to enforce the law for fear of similar retaliation against them.

I am interested in connecting with an attorney or law firm that is not afraid to go after the Aurora and/or Lehman Brothers Bank in a RICO action or a federal or state class action.  If you are an attorney, know of one, or if you were the victim of Aurora's pattern of commencing foreclosure actions without standing, I would like to talk with you.  I can be reached at (917)647-6857.