“Upon a finding by the court of an intentional violation by the lender of this section, or regulation thereunder, the home loan agreement shall be rendered void, and the lender shall have no right to collect, receive or retain any principal, interest, or other charges whatsoever with respect to the loan, and the borrower may recover any payments made under the agreement.”
7. New York Banking Law 6-L(11) states that the remedy of recession of a loan that violates this section is without a time limitations:
“Upon a judicial finding that a high-cost home loan violates any provision of this section, whether such violation is raised as an affirmative claim or as a defense, the loan transaction may be rescinded. Such remedy of rescission shall be available as a defense without time limitation.”
8. In LaSalle Bank, N.A. v. Shearon, 19 Misc. 3d 433, 850 N.Y.S2d 871 (N.Y. Supp. 2008), the Court ruled that the Plaintiff’s loan was predatory because “the Plaintiff’s do not offer one scintilla of evidence as to their required “due diligence” inquiry regarding…[the borrower’s] ability to pay which is a violation of New York Banking Law governing High Cost Loans”.
9. The Plaintiff cannot pretend to not realize that the amount and terms of the loan made it a blatantly predatory loan and subject to laws designed to discourage predatory lending.
10. In addition to NY State Laws, RESPA and TILA, other federal laws, including the Homeownership and Equity Protection Act (“HOEPA”) restrict predatory lending.
11. Based on the predatory nature of a mortgage loan, the relief sought by a New York foreclosure defendant may be granted.