New York Attorney General Eric Schneiderman is standing in opposition to what he terms a “quick, cheap settlement” between all fifty states and major lenders over alleged widespread foreclosure, mortgage, and securitization fraud. He vowed to take “the hardest line” against the settlement, according to an article in yesterday’s Rochester Democrat and Chronicle. Schneiderman was upset over the lack of actual investigation, which he said left the attorneys general with “no leverage“.
A fifty-state joint investigation into foreclosure and mortgage fraud started last fall, and appears increasingly destined for failure. We noted in May that the settlement was in danger of falling apart as several AGs, including those for the States of Nevada, Illinois, Arizona, California, and Delaware began their own independent investigations.
A proposed settlement was the result of the joint “investigation” between all 50 State Attorney Generals and major lenders over alleged foreclosure and mortgage abuses. The investigation was lead by Iowa Attorney General Tom Miller, who initially promised to pursue criminal charges against those who had committed fraud, and later reneged on that promise. The proposed settlement figure was said to range between $20-$25 billion, although this figure was rejected by banks, who proposed paying a $5 billion settlement. This proposal was also rejected as being too low.
It is going to be really interesting to see where Schneiderman’s investigation goes, especially since he seems intent on investigating mortgage securitization issues.
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Senka
June 29, 2011 @ 1:55 pm
We MUST demand criminal prosecution not only for BofA, Countrywide executives, but many other from Wall Street and our government that turned the other way while all this fraud was going on and then bailed them out with OUR MONEY so now they can settle their crimes! WHAT ABOUT US, WHAT ABOUT PEOPLE???? Are we going to get our houses for free now? Are we going to be reimbursed for pain and sufferings caused by those greedy demons???
The results of Wall Street’s fraud are numerous FRAUDclosuers, topped with the ignorance that works well for those who committed the biggest financial crime in the history of the world.
Please read: “My Registry is a crime scene”, MA Essex County Register of Deeds – John O’Brien: http://tinyurl.com/42e8nom
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