New York Attorney General Eric Schneiderman will reportedly chair President Barack Obama's new committee investigating the mortgage-backed securities that are the center of several mortgage litigation claims by private investors.
In his State of the Union speech this week, President Obama said the new special unit of federal prosecutors and attorneys general will "expand investigations into the abusive lending and packaging of risky mortgages that led to the housing crisis."
The new unit on mortgage origination and securitization abuses will be established through the president's financial fraud enforcement task force, according to an MSNBC report.
"I would like to thank President Obama for his leadership in the creation of a coordinated investigation that marshals state and federal resources to bring justice for the victims of the misconduct that caused the mortgage crisis," Schneiderman said in a press statement. "In coordination with our federal partners, our office will continue its steadfast commitment to holding those responsible for the economic crisis accountable, providing meaningful relief for homeowners commensurate with the scale of the misconduct, and getting our economy moving again.
"The American people deserve a robust and comprehensive investigation into the global financial meltdown to ensure nothing like it ever happens again, and today's announcement is a major step in the right direction."
In August 2011, Schneiderman petitioned to intervene in the proposed $8.5 billion Bank of America Corp. private-label mortgage settlement.
