DS News

30 As attorney out of Schiller, Knapp, Lefkowitz & Hertzel's New York office, Sanda focuses his practice in creditor representation in foreclosures, loss mitigation, and collections, and is admitted to practice in New York State Courts, and the U.S. District Court for the Northern District of New York. He is a graduate of the University of Massachusetts (B.B.A. 1999), the George Washington University Law School (J.D. 2003), and the George Washington University School of Business (M.B.A. 2003). What should law firms be doing to grow their business and adapt to the ever- changing industry landscape? A law firm's ability to grow is a function of its ability to achieve cost-effective results and to meet client expectations. ese, in turn, are functions of a law firm's systems, institutionalized knowledge base, ability to adapt to change, and, of course, its people. ese processes must be sharpened continuously for a firm to remain competitive, particularly given the increased complexity of foreclosure law over the past 10 years. Focused improvement in these four areas translates to quicker turnarounds on recovery, an improved reputation in the courts and with servicers, and in growing business. Neglecting any of these areas can lead to recovery delays, mistakes, and losses, which will ultimately result in a shrinking business. Mortgage servicers need counsel who are fully-versed in the changing legal landscape, and who possess the creativity and resourcefulness to adapt to these changes and produce winning results that are cost-effective. What current cases have the potential to make a significant impact on the industry going forward? e parallel decisions issued by Justice omas F. Whelan out of the Suffolk County Supreme Court in Nationstar Mortgage, LLC v. Donald MacPherson and Wilmington Savings Fund Society, FSB v. Ardith DeCanio are worth watching. ese trial court decisions have the potential to alter the landscape of the statute of limitations, providing that the terms of the mortgage determine when a loan is accelerated, not the commencement of a foreclosure. Specifically, where a mortgage permits a borrower to reinstate by tendering all missed payments and fees—a provision contained in the standard Fannie/Freddie form mortgage—Justice Whelan held that the plaintiff lacks the legal means to accelerate a mortgage debt until a judgment of foreclosure is issued. is theory has been advanced in multiple jurisdictions across the country recently, most notably in Florida, and it will be interesting to see whether an appellate court takes the issue head-on this year. An appellate court's endorsement of Justice Whelan's view would be an enormous benefit to servicers in New York. What are the challenges of trying to keep up with new legislation and regulations across the industry? One of the major challenges is dealing with New York's relatively new law, referred to as the "Zombie Properties Act," which went into effect in December 2016. e law was passed in response to the blight and increased crime resulting from the growing number of homes abandoned by homeowners at risk for foreclosure. e new law places the burden on first-position mortgage holders to inspect, secure, and maintain these abandoned properties under certain circumstances, despite the fact the mortgage holder does not own the property, and regardless of whether it is pursuing foreclosure. I accept that abandoned properties across the state are a legitimate Mortgage servicers need counsel who are fully- versed in the changing legal landscape, and who possess the creativity and resourcefulness to adapt to these changes and produce winning results that are cost-effective. COUNSEL'S CORNER LEARNING LESSONS FROM DIVERSE COURT CASES GREGORY J. SANDA Associate Attorney, Schiller, Knapp, Lefkowitz & Hertzel, LLP

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