New York AG Eric Schneiderman Investigating Foreclosures On Active-Duty Military Members

New York Attorney General Eric Schneiderman is launching an investigation into possibly illegal foreclosures on homes owned by members of the military and their families, Shahien Nasiripour of the Financial Times reports.

The investigation is part of a broader probe by Schneiderman to investigate the mortgage practices of major banks, a person familiar with the matter told Bloomberg.

About 5,000 homes owned by active-duty members of the military and their families may have been foreclosed on by 10 leading lenders in violation of the Servicemembers Civil Relief Act, which aims to protect members of the military from financial distress, according to data released last week by the Office of the Comptroller of the Currency.

Bank of America and Morgan Stanley reached deals with the Justice Department earlier this year to settle claims that they foreclosed on more than 175 active-duty servicemembers without court orders.

JPMorgan Chase also admitted to illegally foreclosing on 27 active-duty members of the military earlier this year.

Schneiderman has been one of the most outspoken AGs on banks' foreclosure practices. He's led the push by some attorneys general to get a narrower settlement between government officials and the nation's biggest banks over claims that they illegally foreclosed on American homeowners.

Government officials and states' individual 50 attorneys general started the probe after reports of "robo-signings" and other potentially improper foreclosures came to light.

Schneiderman may have suffered for his criticisms of the deal; he was booted off the committee leading the talks between government officials and the banks after the New York Times editorial board said that he should stay firm in not supporting a deal that would largely absolve banks.

Comments

[batguano]

02:04 PM on 12/04/2011

We are increasingly living in a national "Potterville"; this is not the wonderful life society, democratic republic, or one of even basic justice, it is increasingly dominated by profits over people, greed & corporate abuse of citizens, usually using tactics that would at one time been deemed illegal usury, & prosecuted; too bad our courts, especially SCOTUS have been driven to the right & de facto Corporate Fascism while AG Holder is busy cracking-down on medicinal marijuana.

The power of campaign contributions to buy candidates, legislators & legislation further increasing ability of the rich & powerful to "rob with a fountain-pen" has become fact; our Congress does not represent the people anymore. De-regulation of bankers, wall st, the mortgage industry, student loan industry, pharmaceutical industry, etc, etc, has allowed deceptive advertising, ultra fine-print lies that amount to license to steal, or sell worthless dangerous junk to people who have lost the promise of a government of, by & for the people, even a modicum of protection against thieves & liars; instead of being prosecuted, perpetrator/thieves give campaign contributions for a free pass; we are thru the looking-glass to hell in a hand-basket folks!

OWS!

[batguano]

02:03 PM on 12/04/2011

NY AG Schneiderman, Delaware’s Biden, CA’s Harris, and now Nevada’s AG, have all stood tall against the sweetheart deal to fine the mortgage industry pennies on the dollar for what they stole from the public and absolve mortgage fraudsters of any further criminal liability; the deal is enthusiastically supported by Prez Obama; WHY?
http://www.opednews.com/articles/NY-AG-Schneiderman-No-Long-by-Gustav-Wynn-110830-86.html

NYAG Schneiderman, Delaware’s Biden, CA’s Harris, & Nevada’s, have stood against the sweetheart deal fining the mortgage industry millions for billions they stole from the public & absolves mortgage fraudsters of any further criminal liability; the deal is enthusiastically supported by Prez Obama; WHY?
http://www.opednews.com/articles/NY-AG-Schneiderman-No-Long-by-Gustav-Wynn-110830-86.html

[joni brit]

02:30 AM on 12/02/2011

We owe this success to lawyers Chana Lask, Attorney General Schneiderman and Representative Cummings who would not quit when all other attorney generals of every other state were ready to throw in the towel months ago and accept a paltry settlement. This is far from the end game, the Banks have been bailed out again, but it is still a step forward. Not unlike David Stern in Florida, Steven Baum is being championed in New York and truth has triumphed! Chana Lask at risk to herself, and Eric Schneiderman and Representative Elijah Cummings are championing for the families that cannot speak for themselves and tonight these families are resting on dreams less shattered.
Thank you. Please continue, 1.5 million homeless children, or 1 out of every 50 children across America and their parents dreams, future, livlihood, and generations depend on it. There seems to be billions to bail out Wells Fargo and BOA again, but where is the money to feed, shelter and educate these children who were forceably removed from fraudulently foreclosed homes? The Big Short seems to be this Generation, the future generation of America, and you are the only ones protecting it, not shorting it.

[lvdragonlady]

01:39 AM on 12/02/2011

All veterans, should get free benefits for life, loans for school or housing at no more then 2%. These people put their lives on the line for America and should be treated with respect NOT with foreclosures and unemployment.

[ReaItors Are Liars]

12:12 PM on 12/01/2011

Where any of the borrowers delinquent or in default?

[anastmosis]

12:38 PM on 12/01/2011

The Servicemembers Civil Relief Act was passed so that if servicemembers fell behind on their payments because they were busy risking their lives serving our country, foreclosure would be delayed so they would be given the chance to make amends and get caught up when they returned home, so yes, I bet most were delinquent or in default, but the law states that the banks are not to foreclose until the servicemembers return home.

[ReaItors Are Liars]

12:42 PM on 12/01/2011

The article doesn't indicate when the foreclosures occurred. Did they occur before borrowers returned stateside?

[Heidi Adami]

02:48 PM on 12/01/2011

Kinda misses the point...

[ReaItors Are Liars]

02:51 PM on 12/01/2011

No. Legally it IS the point.

[bdzdean]

12:08 PM on 12/01/2011

It truly sickens me that military members have lost their homes while defending our country, our individual safety and freedom. Yet, these banks and their employees like vultures turn against our military members. Its not enough for the banks that individuals serving in the military put their lives on the line every day and emotionally suffer the physical loss of loved ones, children and their families while serving. And now the banks find it necessary by use of illegal tactics and manipulation to take our service men and woman's homes away from them as well?

Its wrong and its pure greed.

[KsAPigButt]

12:00 PM on 12/01/2011

The US Attorney General should have BEEN cracking down on the military foreclosures for at least a year ago. And then do something about the rest of them.

[joni brit]

04:38 AM on 12/02/2011

he is doing something about the rest of them

[Oregonian76]

10:40 AM on 12/01/2011

How about this: any bank that illegally forecloses on even ONE service member loses their right to offer mortgages. They have to immediately forfeit ALL mortgages they hold - the homeowner simply needs to make a $1 buy-out payment to complete the mortgage contract.

Think of it as another sacrifice the soldier gave to the country - there might be some paperwork for he or his family to ensure the house stays theirs, but by being "the one that got illegally foreclosed on", hundreds of thousands (possibly millions) of homeowners now own their homes outright.

I wonder if that would get EVERYONE'S attention...

[Bubba Gump]

10:45 AM on 12/01/2011

Sounds like a good plan to me! Why do bankers get a free pass when demonstrating outright incompetence at best or sheer law-breaking against true American patriots, no less? Would not a doctor or lawyer, in the same situation, lose their license to practice?

[joni brit]

04:43 AM on 12/02/2011

huh? how about if any Bank or Loan Company fraudulently forecloses on anyone? It doesn't bother anyone the same guy you're paying 21% interest to on your credit card is still robo signing on your neighbor. If you think this is a Democracy we have different dictionaries.

[Oregonian76]

10:20 AM on 12/02/2011

Something has to be done about ALL illegal foreclosures, yes. I just think that, at least in this case, it's especially egregious for a bank to illegally foreclose on an active duty member of the military that's currently deployed to a war.

So, by all means, we can extend my idea to ALL illegal foreclosures. Imagine how much money we'd all have to spend on the retail market if we owned our homes outright! That would boost the economy... :)

[joni brit]

10:38 AM on 12/02/2011

I'm not too sure exactly what your idea is but imagine how it might boost the economy if instead of having 1.5 million homeless children in America today, that's 1 out of every 50, the highest rate since the great depression, and at least half due to fraudulent foreclosures from the Banks now being bailed out again, imagine how it might boost the economy having them back in their homes, content with employed parents, going to sleep in their own beds, being nurtured with dreams of the future instead of dreams shattered, and someday graduating from school and being productive members of society rather than turning to drug use which is at its highest use in America's history. How's America planning to bail out this big short?

[mdmccormick]

09:18 AM on 12/01/2011

Not only should all 5000 get a new home paid in full from these crooks but the crooks should also be sent to jail or the front lines.

[Bubba Gump]

09:31 AM on 12/01/2011

I vote for the front lines ... with automatic KP instead of any liberty call.

[mumi009]

09:16 AM on 12/01/2011

Read my posts in reverse order. I tried to find out what sentence the HP censors where finding objectionable.

All individual sentences seem to have gone through.

When I tried to send the whole post for the upteenth time, it was rejected enitrely again.

Strange, isn't it?

[Bubba Gump]

09:15 AM on 12/01/2011

It appears the position in relation to the tellers' booths is the determining factor of whether bank robbery is legal. Stand in the lobby and take money -- go to prison and forfeit the money. Sit at a banker's desk -- get a wrist slap for a fine and a golden parachute promotion for ripping off the American people!

[mumi009]

09:14 AM on 12/01/2011

They must wonder if this is the America they pledged to defend and protect.

[mumi009]

09:14 AM on 12/01/2011

Then the servicemen and servicewomen and their families have to suffer at the hands of these financial sc*mb*g-banksters at home.

[mumi009]

09:14 AM on 12/01/2011

The suffer financial and emotional stress along with their loved ones on assignment in Iraq, Afghanistan or in any number of flashpoints around the globe.

[mumi009]

09:13 AM on 12/01/2011

Families at home are worried sick about them and for their safety.