The Business Records Exception to the Hearsay Rule

By: Samantha Alves Orender and M. Scott Thomas

When a bank assigns a mortgage to another bank, the assignor typically provides a loan payment history to the assignee as part of the transfer. If the assignee later brings suit to foreclose the mortgage, it is typical to seek foreclosure via a Motion for Summary Judgment. In support of such a motion, we include an affidavit from a bank officer testifying to the amount of the debt. Sometimes, opposing counsel will challenge the bank officer’s ability to testify as to the assignor bank’s payment records. They might argue that an affidavit that puts forth the former bank’s records is inadmissible hearsay. However, there is an exception to the hearsay rule called the business records exception.