Further, according to plaintiff's application, the default of defendants Valentin and Ruiz began with the nonpayment of principal and interest due on January 1, 2007. Yet, four months later, plaintiff HSBC was willing to take an assignment of the instant nonperforming loan. The Court wonders why HSBC would purchase a nonperforming loan, four months in arrears?

Additionally, plaintiff HSBC must address a third matter if it renews its application for an order of reference. In the instant action, as noted above, Scott Anderson, as Vice President of MERS, assigned the instant mortgage to HSBC on May 1, 2007. Doris Chapman, the Notary Public, stated that on May 1, 2007, "personally appeared Scott Anderson, of1661 Worthington Road, Suite 100, West Palm Beach, Florida 33409." In HSBC Bank, N.A. v Cherry, at 3, I observed that: [*3]

Scott Anderson, in his affidavit, executed on June 15, 2007, states

he is Vice President of OCWEN. Yet, the June 13, 2007 assignment

from MERS to HSBC is signed by the same Scott Anderson as

Vice President of MERS. Did Mr. Anderson change his employer

between June 13, 2007 and June 15, 2007. The Court is concerned

that there may be fraud on the part of HSBC, or at least malfeasance.

Before granting an application for an order of reference, the Court

requires an affidavit from Mr. Anderson describing his employment

history for the past three years.

Lastly, the court notes that Scott Anderson, in the MERS to

HSBC assignment gave his address as Suite 100. This is also the

address listed for HSBC in the assignment. In a foreclosure action

that Idecided on May 11, 2007 (Deutsche Bank Nat. Trust Company

v Castellanos, 15 Misc 3d 1134[A]), Deutsche Bank assigned the

mortgage to MTGLQ Investors, L.P. I noted, at 4-5, that MTGLQ

Investors, L.P.:

According to Exhibit 21.1 of the November 25, 2006 Goldman

Sachs 10-K filing with the Securities and Exchange Commission . . .

is a "significant subsidiary" of Goldman Sachs. . . . [T]he January 19,

2007 assignment has the same address for both the assignor Deutsche

Bank and the assignee MTGLQ Investors, L.P., at 1661 Worthington

Road, Suite 100, West Palm Beach, Florida 33409. The Court will not

speculate about why two major financial behemoths, Deutsche Bank

and Goldman Sachs share space in a West Palm Beach, Florida office

suite

In the instant action, with HSBC, OCWEN and MERS, joining

with Deutsche Bank and Goldman Sachs at Suite 100, the Court is now

concerned as to why so many financial goliaths are in the same space.

The Court ponders if Suite 100 is the size of Madison Square Garden to

house all of these financial behemoths or if there is a more nefarious

reason for this corporate togetherness. If HSBC seeks to renew its

application for an order to reference, the Court needs to know, in the

form of an affidavit, why Suite 100 is such a popular venue for these

corporations.

Real Property Actions and Proceedings Law (RPAPL) § 1321 allows the Court in a foreclosure action, upon the default of the defendant or defendant's admission of mortgage payment arrears, to appoint a referee "to compute the amount due to the plaintiff." In the instant action, plaintiff's application for an order of reference is a preliminary step to obtaining a default judgment of foreclosure and sale. (Home Sav. Of Am., F.A. v Gkanios, 230 AD2d 770 [2d Dept 1996]).

shall file proof of service of the summons and the complaint, or

a summons and notice served pursuant to subdivision (b) of rule

305 or subdivision (a) of rule 316 of this chapter, and proof of

the facts constituting the claim, the default and the amount due

by affidavit made by the party . . . Where a verified complaint has

been served, it may be used as the affidavit of the facts constituting

the claim and the amount due; in such case, an affidavit as to the

default shall be made by the party or the party's attorney. [Emphasis

added].

Plaintiff has failed to submit "proof of the facts" in "an affidavit made by the party." The affidavit is submitted by Jessica Dybas, "a Foreclosure Facilitator of OCWEN LOAN SERVICING, LLC, servicing agent and attorney in fact to the holder of the bond and mortgage sought to be foreclosed herein." There must be an affidavit by an officer of HSBC or a servicing agent, possessing a valid power of attorney from HSBC for that express purpose. Additionally, if a power of attorney is presented to this Court and it refers to pooling and servicing agreements, the Court needs a properly offered copy of the pooling and servicing agreements, to determine if the servicing agent may proceed on behalf of plaintiff. (EMC Mortg. Corp. v Batista, 15 Misc 3d 1143 (A) [Sup Ct, Kings County 2007]; Deutsche Bank Nat. Trust Co. v Lewis, 14 Misc 3d 1201 (A) [Sup Ct, Suffolk County 2006]).

Also, the instant application upon defendants' default must be denied because even

though it contains a verified complaint, the attorney's verification is insufficient to meet the requirements of CPLR § 3215 (f). The Court, in Mullins v Di Lorenzo, 199 AD2d 218 [1st Dept 1993], instructed that "a complaint verified by counsel amounts to no more than an attorney's affidavit and is therefore insufficient to support entry of judgment pursuant to CPLR 3215." Citing Mullins v Di Lorenzo, the Court, in Feffer v Malpeso, 210 AD2d 60, 61 [1st Dept 1994], held that a complaint with not more than an attorney's affidavit, for purposes of entering a default judgment "was erroneous and must be deemed a nullity." Professor David Siegel, in his Practice Commentaries (McKinney's Cons Laws of NY, Book 7B, CPLR C3215: 16) explains that Mullins v Di Lorenzo

is in point here. Perhaps the verified complaint can do service as

an affidavit for various purposes within the litigation while the contest

is on . . . but it will not suffice to put an end to the contest with as

drastic a step as a default at the outset. It must be kept in mind that

even an outright "affidavit" by the plaintiff's attorney on the merits

of the case— except in the relatively rare circumstances in which the

attorney happens to have first-hand knowledge of the facts—lacks

probative force and is usually deemed inadequate by the courts to

establish the merits. A fortiori, a verified pleading tendered as proof

of the merits would also lack probative force when the verification is

the attorney's. [Emphasis added]

In Blam v Netcher, 17 AD3d 495, 496 [2d Dept 2005], the Court reversed a default

judgment granted in Supreme Court, Nassau County, holding that:

In support of her motion for leave to enter judgment against [*5]

the defendant upon her default in answering, the plaintiff failed to

proffer either an affidavit of the facts or a complaint verified by a

party with personal knowledge of the facts (see CPLR 3215 (f):

Goodman v New York City Health & Hosps. Corp. 2 AD3d 581

[2d Dept 2003]; Drake v Drake, 296 AD2d 566 [2d Dept 2002];

Parratta v McAllister, 283 AD2d 625 [2d Dept 2001]). Accordingly,

the plaintiff's motion should have been denied, with leave to renew

on proper papers (see Henriquez v Purins, 245 AD2d 337, 338

[2d Dept 1997]).

(See Hazim v Winter, 234 AD2d 422 [2d Dept 1996]; Finnegan v Sheahan, 269 AD2d 491 [2d Dept 2000]; De Vivo v Spargo, 287 AD2d 535 [2d Dept 2001]; Peniston v Epstein, 10 AD3d 450 [2d Dept 2004]; Taebong Choi v JKS Dry Cleaning Eqip. Corp., 15 AD3d 566 [2d Dept 2005]; Matone v Sycamore Realty Corp., 31 AD3d 721 [2d Dept 2006]; Crimmins v Sagona Landscaping, Ltd., 33 AD3d 580 [2d Dept 2006]).

Therefore, the instant application for an order of reference is denied without prejudice, with leave to renew. The Court will grant plaintiff HSBC an order of reference when it presents: an affidavit by either an officer of HSBC or someone with a valid power of attorney from HSBC, possessing personal knowledge of the facts; an affidavit from Scott Anderson clarifying his employment history for the past three years and what corporation he serves as an officer; and, an affidavit by an officer of HSBC explaining why HSBC would purchase a nonperforming loan from Delta Funding Corporation, and why HSBC, OCWEN, MERS, Deutsche Bank and Goldman Sachs all share office space in Suite 100.

ORDERED, that the application of plaintiff, HSBC BANK N.A., AS INDENTURE TRUSTEE FOR THE REGISTERED NOTEHOLDERS OF RENAISSANCE HOME EQUITY LOAN TRUST 2005-3, RENAISSANCE HOME EQUITY LOAN ASSET-BACKED NOTES, SERIES 2005-3, for an order of reference for the premises located at 572 Riverdale Avenue, Brooklyn, New York (Block 3838, Lot 29, County of Kings), is denied without prejudice; and it is further

ORDERED, that leave is granted to plaintiff, HSBC BANK N.A., AS INDENTURE TRUSTEE FOR THE REGISTERED NOTEHOLDERS OF RENAISSANCE HOME EQUITY LOAN TRUST 2005-3, RENAISSANCE HOME EQUITY LOAN ASSET-BACKED NOTES, SERIES 2005-3, to renew its application for an order of reference for the premises located at 572 Riverdale Avenue, Brooklyn, New York (Block 3838, Lot 39, County of Kings), upon presentation to the Court, within forty-five (45) days of this decision and order, of: an affidavit of facts either by an officer of HSBC or someone with a valid power of attorney from HSBC, possessing personal knowledge of the facts; an affidavit from Scott Anderson, describing his employment history for the past three years; an affidavit from an officer of plaintiff HSBC BANK N.A., AS INDENTURE TRUSTEE FOR THE REGISTERED NOTEHOLDERS OF RENAISSANCE HOME EQUITY LOAN TRUST 2005-3, RENAISSANCE HOME EQUITY LOAN ASSET-BACKED NOTES, SERIES 2005-3, explaining why plaintiff would purchase a [*6]nonperforming loan from Delta Funding Corporation and why plaintiff

HSBC BANK N.A., shares office space at Suite 100, 1661 Worthington Road, West Palm Beach, Florida 33409, with Ocwen Federal Bank FSB, Mortgage Electronic Registration Systems, Inc., Deutsche Bank and Goldman Sachs.

This constitutes the Decision and Order of the Court.

ENTER

___________________________

HON. ARTHUR M. SCHACK

J. S. C.