AG Moves To Curb Robosigning
Fresh off his I-STOP victory, Attorney General Eric Schneiderman is pushing a measure that would prohibit the use of “robosigning” of mortgages, a move that his office says will cut down on home-lending fraud.
The measure, known as the Foreclosure Fraud Prevention Act, would also impose criminal penalties that include jail time for those who engage in fraudulent borrowing. The bill also takes aim at managers who knowingly trolerate fraud within their company.
“For many middle class New Yorkers, their life savings is in their home. To take away people’s homes under fraudulent circumstances is a crime deserving of jail time,” Schneiderman said in a statement. “By treating foreclosure fraud as the serious crime that it is, we can deter future abuse and spare untold numbers of families the trauma of wrongful foreclosure. This legislation will ensure that employees involved in these fraudulent and abusive practices, and their supervisors who allow the misconduct to continue, will be held accountable for their crimes.”
Schneiderman has made mortgage and home ownership issues the signature issue of his first term as attorney general. After pushing for a better deal from major bank lenders as part of a nationwide settlement, Schneiderman was initially booted from a panel of state attorneys general. President Obama would later name him to lead a mortgage-fraud investigation panel after incorporating some of the attorney general’s concerns.
Earlier this year, Schneiderman secured $130 million and $15 million for New York from a national mortgage settlements.
| Print article | This entry was posted by Nick Reisman on June 14, 2012 at 1:33 pm, and is filed under Attorney General, Eric Schneiderman. Follow any responses to this post through RSS 2.0. Both comments and pings are currently closed. |
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