June 14, 2007

Plaintiffs secured a mortgage loan from defendant and paid a number of settlement charges, to include a $100 document preparation fee. They then filed a putative class action suit claiming that the document preparation was tantamount to the unauthorized practice of law, and, therefore, in violation of Judiciary Law § 478, § 484, and § 495(3). The First Department disagreed, in Fuchs v. Wachovia Mtge. Corp., which was decided on June 5, 2007. The court noted that the document in question required only that defendant fill in the name and address of the borrower, the date of the loan, the principal amount loaned, the interest rate, and the monthly payment. Plaintiffs had their own attorney at the closing and never claimed that they had received any legal advice from defendant.