Eric Schneiderman: How to fix the housing crisis

[cal04]

http://www.timesunion.com/opinion/article/How-to-fix-the-housing-crisis-3668366.php?cmpid=twitter


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The first step toward these goals was negotiating the national mortgage settlement that was concluded in February. In order to resolve numerous violations of state and federal law related to mortgage servicing and foreclosure practices, the five largest mortgage servicing banks agreed to provide billions of dollars worth of relief to homeowners in the form of lower interest rates, and mortgage principal reduction, and billions more to states to assist homeowners. The settlement tightens rules for mortgage servicing and foreclosures — and maintains the right to bring legal action over misconduct in the mortgage market that has not yet been fully investigated, or where investigations are ongoing.

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We are also taking legislative action to address this crisis. Last week, I introduced a bill that would make it a crime to knowingly file false documents in a foreclosure proceeding, or to recklessly tolerate such fraud as a supervisor. The threat of jail time will be a strong deterrent against fraud by mortgage services.

The Assembly overwhelming passed this proposed legislation last week. We have 34 sponsors for the bill in the Senate and I remain hopeful that when the Senate returns, they will act to treat foreclosure fraud as the serious crime that it is so we can deter future abuse and spare untold numbers of families the trauma of wrongful foreclosure.

The housing crisis didn't start overnight, and it won't end overnight either. But together with our partners in the Legislature, legal services and housing communities, and the federal government, we will hold those responsible for the mortgage meltdown accountable and unleash the truth about what happened so we can ensure that it never happens again.

Eric Schneiderman is attorney general of New York.

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[Iggy]

1. Looks good on the surface, but

I'll believe it when I see it.

the banksters are arrogant, selfish clowns. since our economy is more or less collapsing, they don't have
any way (they think) of making money other than fees-- both declared and hidden. I dbeigon't see them
being on board with fixing the mortgage mess-- just the opposite.

it's not by accident that not long ago Voelker called them out as a bunch of buffoons who hadn't created
anything useful since the ATM machine.