As FBI identifies New York State as a top mortgage fraud state, joint committee to hold hearing to assess damage done and prevent future fraud
New York, NY – On Wednesday, October 28 Sen. Brian X. Foley (D – Blue Point) and Sen. Eric T. Schneiderman (D – Manhattan-Bronx), Chairs of the Senate Banking and Codes Committees respectively, will hold a special joint hearing in New York City to address the mortgage fraud crisis that is wreaking havoc across the state.
Brooklyn District Attorney Charles Hynes, as well as officials from the Attorney General’s office, Superintendent of Banks Richard Neiman, Supreme Court Justice Hon. Arthur Schack, attorneys, advocates, mortgage fraud victims and others are scheduled to testify.
In recent years, residents of the state of New York, especially the suburban areas surrounding New York City and Long Island, have experienced a significant increase of criminal activity with regards to residential mortgage fraud. In a 2008 report, the Federal Bureau of Investigation (FBI) identified New York as one of the “top 10 mortgage fraud states.”
New Yorkers have suffered catastrophic losses as a result of sophisticated residential mortgage fraud scams targeted at prospective home buyers.
The purpose of the hearing is to gather information concerning the types of fraud practiced on mortgage borrowers. The committees will assess the investigation and prosecution of residential mortgage fraud in the State of New York.
In addition to victims of mortgage fraud, the joint committee hearing is scheduled to include testimony from:
Charles Hynes – Brooklyn District Attorney
Richard Neiman – Superintendent of the New York State Banking Department
Ricardo Velez – Director of Criminal Investigations Bureau, NYS Banking Department
Richard Farrell – Rackets Division of Kings County District Attorney’s Office
Arthur Schack – State Supreme Court Justice
Josh Zinner – Neighborhood Economic Development Advocacy Project
Nicole Gueron – Office of NYS Attorney General’s Office (led lawsuit against Washington Mutual and First American Corporation for false appraisal schemes)