In January 2012, President Obama announced the formation of a Residential Mortgage-Backed Securities Working Group to continue investigating the foreclosure crisis. That working group is co-chaired by Attorney General Schneiderman, along with Housing and Urban Development (HUD) Secretary Shaun Donovan, and Securities and Exchange Commission (SEC) Director of Enforcement Robert Khuzami, and includes the IRS, the Consumer Financial Protection Bureau and other government entities. This combination of state and federal agencies gives the working group the resources it needs, as well as the broadest possible jurisdiction to continue investigating those responsible for misconduct that contributed to the economic crisis through the pooling and sale of residential mortgage-backed securities.
In his role as Working Group co-chair, Attorney General Schneiderman has launched several investigations into the role of banking institutions in the creation of the mortgage bubble and its subsequent crash, resulting in comprehensive lawsuits. In addition, he’s reached two historic settlements with JP Morgan and Bank of America regarding their role in the crisis. In total, since Attorney General Schneiderman took office in 2011, his office’s many settlements with the banks have secured more than $4 billion in relief for struggling New York homeowners.