After Schneiderman’s Persistence, Narrow Settlement Preserves Sweeping Legal Claims For Housing Crisis Misconduct That Has Not Yet Been Investigated
New York To Receive More Per Underwater Borrower Than Any Other State, Plus Loan Modifications, Principal Reductions
Schneiderman: Civil & Criminal Investigations Will Continue As We Seek Accountability For Those Responsible For Crisis And Leverage Greater Relief For Homeowners
Among the critical legal claims Attorney General Schneiderman fought for, and successfully preserved in today’s settlement are:
· All criminal claims.
· All claims based on mortgage securitization misconduct, under securities fraud statutes, including New York’s Martin Act, and other sources of law. This includes securitization claims based on servicing, foreclosure or origination-related facts.
· All claims directly against the private national mortgage electronic registry system known as MERS, as well as claims against financial institutions for the use of MERS in the Attorney General’s recently filed lawsuit over a wide range of deceptive and fraudulent practices in New York.
· All claims for violations of fair lending lawsthat relate to discriminatory practices in loan origination.
· All tax claims, including any claim that the failure to transfer mortgage loans to the securitization trusts or other conduct violated tax rules.
· All claims by counties for lost mortgage recording fees; and
· All claims and defenses held by private and third parties, including those held by individual mortgage loan borrowers.