New York Working With Delaware Officials on Criminal Foreclosure Inquiry
By David McLaughlin – Oct 26, 2011 9:28 AM ET
“This was a man-made crisis, it was created by regulatory neglect and greed,” said Schneiderman in an interview last night on the cable news network MSNBC. He has been investigating mortgage practices of banks as state and federal officials negotiate a settlement with lenders over foreclosure and mortgage-servicing conduct.
“Beau Biden, who is the attorney general of Delaware, and I thought we really needed to dig in a little bit deeper,” Schneiderman said yesterday in an interview with MSNBC’s Rachel Maddow. “We’re also looking at the conduct of individual institutions and individuals to see if there were misrepresentations made, to see if there was any fraud committed, to see if criminal acts were also a part of this, and that’s what Beau and I are looking at.”
All 50 state attorneys general last year announced they were investigating the foreclosure practices of banks following disclosures that faulty documents were being used to seize homes. Negotiations with banks including Bank of America Corp. and JPMorgan Chase & Co. have yet to achieve a settlement more than a year since the investigation began.
Bank of America
Representatives of Charlotte, North Carolina-based Bank of America and New York-based JPMorgan didn’t immediately respond to e-mails seeking comment after normal business hours.
Schneiderman and Biden have said any settlement with the banks shouldn’t provide liability releases to the companies for matters that haven’t been fully investigated, including the packaging of loans into securities.
Joe Rogalsky, a spokesman for Biden, didn’t immediately respond to an e-mail and phone message seeking comment after normal business hours.
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