in News > Mortgage Servicing
print the content item


New York Attorney General Eric T. Schneiderman has announced the introduction of his bill in the state legislature that is designed to protect New Yorkers from fraudulent business practices in the foreclosure process.

The legislation - the Foreclosure Fraud Prevention Act of 2012, sponsored by Assemblywoman Helene Weinstein, D-Brooklyn - makes foreclosure-related fraud a Class A misdemeanor, punishable by up to a year in jail and a $1,000 fine, for employees or agents of a residential mortgage business who "knowingly authorize, prepare, execute or offer for filing false documents in a pending or prospective residential foreclosure action."

Furthermore, the bill makes it a Class E felony, punishable by up to four years in state prison, for such employees to engage in multiple acts of foreclosure fraud, and also makes it a Class E felony for a "high managerial agent" of a residential mortgage business to "recklessly tolerate" such fraudulent conduct by his or her agents or employees.

"For many middle class New Yorkers, their life savings is in their home," says Schneiderman. "To take away people’s homes under fraudulent circumstances is a crime deserving of jail time. 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."


Six important questions you need to ask about your compliance process_id1314


Latest Top Stories

FHFA Seeks Feedback On Proposed Single Security For GSEs

The agency is requesting feedback from mortgage industry professionals on all aspects of the proposed single security structure and in particular, issues regarding the transition from the current system to a single security.


Ellie Mae To Buy AllRegs For $30 Million

"With the acquisition of AllRegs, Ellie Mae will expand its customer base and add a broad array of content and services that complement our portfolio of product offerings," says Sig Anderman, CEO of Ellie Mae.


Survey Shows ATR/QM Rules Are Negatively Affecting Approvals

In a survey of loan officers commissioned by the Federal Reserve Board, more than half said the CFPB's ability-to-repay/qualified mortgage rule has reduced approval rates for certain types of mortgages.


Report Lambastes Servicers For Doing Poor Job With HAMP

SIGTARP once again disses mortgage servicers for failing to keep up with the volume of applications for HAMP as well as the Treasury Department for failing to do a better job of overseeing servicers' HAMP activities.


CFPB Seeks To Ease HMDA Reporting Requirements

The CFPB is proposing to exempt lenders that originate fewer than 25 mortgages a year from its new HMDA reporting rules. In addition, financial institutions with a large number of reported transactions would be required to submit HMDA data on a quarterly, rather than annual, basis.

LenderLive_id1241
Hse SandyHook
Industry Resource
Orb Mobile
SWBC_id1313
NAMFS_id1321
Safeguard_id1322