A.G. Schneiderman Announces Up To $15 Million Of National Mortgage Settlement To Extend Funding For Foreclosure Prevention And Other Related Services

A.G. Schneiderman Announces Up To $15 Million Of National Mortgage Settlement To Extend Funding For Foreclosure Prevention And Other Related Services

A.G.’s Commitment Will Continue Funding For Legal Services And Housing Counseling For Six Months

Current Funding Was To Expire On April 1

Schneiderman: Settlement Fight Was To Ensure A Fair Deal For New York Homeowners, Funding Is First Step To Deliver On That Promise

NEW YORK – Attorney General Eric T. Schneiderman today announced that up to $15 million of the $132 million he secured in the national mortgage servicing settlement will be used to extend funding for foreclosure prevention and other related services. Up to $9 million of the allocation will be used to support the state’s Foreclosure Prevention Services Program, which was set to expire on April 1. And up to $6 million will support housing and community renewal activities statewide through not-for-profit community-based housing organizations.

“We have an obligation to provide assistance to the struggling homeowners across the state facing foreclosure, and this portion of the national mortgage settlement will ensure that families in New York State have the legal services they deserve to fight wrongful foreclosures and protect themselves in court,” said Attorney General Schneiderman. “Funding for legal services is an essential first step in bringing relief to the homeowners and communities that have been devastated by the crash of the housing market. As we continue to investigate the mortgage crisis that has impacted communities in every corner of this state, we must ensure that justice and accountability prevail at every step of the way. I’d like to thank the Assembly, Senate and Governor for working with our office to make this happen. ”

Legal services funded through the Foreclosure Prevention Services Program have become an integral part of our state’s foreclosure process. New York’s comprehensive foreclosure prevention law entitles homeowners to a 90 day pre-foreclosure notice before a lender can begin a foreclosure action. This notice is required to include a list of at least five nonprofit housing counseling agencies that can assist homeowners at risk of foreclosure. Organizations funded by the Foreclosure Prevention Services Program have also made possible the courts’ successes in negotiating loan modifications from lenders at foreclosure settlement conferences. Without funding for the Foreclosure Prevention Services Program, most of these agencies would lose the resources necessary to fulfill these critical obligations to homeowners.

Today’s announcement comes weeks after Attorney General Schneiderman announced his office will fund an additional $3 million in foreclosure prevention services to aid New Yorkers struggling through the mortgage crisis from proceeds secured from two separate settlements.

Meghan Faux, Director of the Foreclosure Prevention Project at South Brooklyn Legal Services, said, “This funding is truly a lifesaver. Without Attorney General Schneiderman’s intervention, funding for foreclosure prevention services would have expired and homeowners in need of assistance would have been abruptly cut off. Now, countless families across New York will have access to the legal services and housing counseling they need to save their homes and stabilize their community.”

Anne Erickson, President and CEO of the Empire Justice Center, a statewide legal services organization working to combat foreclosures in New York State, said, “New York’s Attorney General worked tirelessly to ensure that the funding secured through this national settlement is used in the true spirit for which it is intended – to help fight the epidemic of foreclosures across the country and to do so by funding on-the-ground services for homeowners at risk of losing their homes. Because of Attorney General Schneiderman, New York’s most vulnerable homeowners will not lose access to vital and effective services that provide the last line of defense against avoidable—and often wrongful—foreclosures. This is a major victory for struggling homeowners facing foreclosure in every corner of New York State, and we deeply appreciate the Attorney General’s strong leadership on this critical matter.”

Christie Peale, Executive Director, Center for NYC Neighborhoods, said, “This is great news. Thanks to Attorney General Schneiderman’s leadership, critical foreclosure prevention programs will not have to close their doors to New Yorkers in need. The loss of these services, coupled with gaps in regional funding, would have been devastating to struggling homeowners and communities throughout New York State. On behalf of the CNYCN Network of foreclosure prevention providers and the homeowners we all serve, we are grateful to AG Schneiderman for the lifeline that this funding provides.”

Durrant McKie, homeowner from Southeast Queens, said, “As a homeowner who was facing foreclosure, I can say firsthand that we would not have survived if it weren’t for the help of the Foreclosure Prevention Services Program. Our housing counselor ensured that we did not lose our home and that our rights were protected throughout this difficult process. I applaud Attorney General Schneiderman for making sure other families can fight back, and get the help they deserve.”

In February, Attorney General Schneiderman announced a settlement of over $130 million for New York with the nation’s five largest mortgage servicers over foreclosure abuses, the fourth highest dollar amount nationwide as part of the federal-state settlement. In addition to penalties for past abuses, the settlement includes direct relief to victims of wrongful foreclosure conduct, loan modifications including principal reductions for struggling homeowners, and funds that can be used to support foreclosure legal assistance and housing counseling programs. The settlement, which imposes strong national standards for mortgage servicing, also fulfilled Attorney General Schneiderman’s demand that he retain the right to bring legal action over misconduct that has not yet been investigated.

SOURCE: http://www.ag.ny.gov



10 Responses to “A.G. Schneiderman Announces Up To $15 Million Of National Mortgage Settlement To Extend Funding For Foreclosure Prevention And Other Related Services”
  1. Amy says:

    Interesting , really ! All the attorney generals that feel they have won a victory for homeowners through the winning of lawsuits are still not seeing the whole picture for those of us stuck in this mess. I have been in loan modification /Assumption process for 6 years , and for the last 3 in pre foreclosure still hanging in modification suspension limbo … Still Waiting for a modification ! I am on my 27 LM application / assumption and on my 4th attorney , all of whom have taken my money and really done nothing to help . I have called all the Help for Homeowner government sponsored Agency’s ( set up with lawsuit money ) for help and they all say they can not help me ! !!! Really what good does this money due for helping homeowners save their home !!
    My husband and I first applied in 2009 when he was diagnosed with cancer , unfortunately he passed . I notified Chase of his passing , they had me do at least 3 more applications and each time sending the DC and my husbands will .After a year and a half they told me I did not receive a modification as my name is not on the mortgage ( but on the deed ) that I need to assume as well as modify . I waited for the Assumotion packet to arrive for about 6 months calling often to see why I had not received it only to take 8 more months and then some to discover there is no assumption application . About a year of nonesennse with this to be called one day by a new rep that said prior to him calling me there was no assumption dept , there was no place for people like me who need to assume as well as modify !!!! Well I could write forever about the right hand not knowing what the left hand was doing .But I do not want to relive it all again .
    I am still living in our home with our two children and my parents . Still trying and praying for the modification / Assumption . which now has more fees & penalties attached than it is worth .so a word to all the AG’s your lawsuit money is NOT solving the problem of lying , deceitful Banks !!! ..

    The Loan Modification Program was set to make people loose their homes from the word go ! We should have ran from it when we were told not to make payments to qualify ! I wish we never had applied for what seemingly was a good program . Thank you to the US Government , Chase Bank and M&T Bank for lying to me and dragging me through your hell and back !!! This lawsuit money is a joke … It is only lining the pockets of government and non profit agencies that do not help still !!!!!! This is unjust and full of deceit !!! Help For Homeowners is a lie !

  2. The swindle will continue this is just smog screen

  3. When do we the people have our day in court?? We decided to do a deed search and found ton of inconsistencies. The audit trail led me to forgery, fraud and falsly generated documents. I have clear evidence of criminal activities FOR MONETARY GAINS, and I need an attorney to expose these criminal acts.
    The Banks and thier cronies have infiltrated the very core of our Justice System, while leaving the hard working Americans to fend for themselves. When banks and thier cronies mislead, abuse, and manipulate the Federal courts, and the Judges turn a blind eye then it’s time to say enough. We have been forced to endure a sadistic emotional and financial roller coaster ride throughout our journey to reveal the truth of an out and out criminal act. Our understanding of the Judiciary obligation to the people is quite different from what has happened to us. Our understanding of the Judiciary’s obligation is to uphold and promote the independence, integrity, and Impartiality of the office, while avoiding impropriety and the appearance of impropriety. We have always believed We the people have the right to be heard. Truth, Justice and The American way is literally becoming a myth. We the People are beginning to lose confidence in the very thing we hold so dear. When I hear of the corruption in the Judicial system, I immediately coincide it with Treason against the citizens of this great nation.

  4. Fury says:

    foreclosure prevention?

    how about just compelling the foreclosure criminals to pay back their victims??!

    is there any justice or rule of law in the country anymore?

    it is really sickening.

  5. lvent says:


  6. steve groening says:

    Whoever wins the powerball can contribute more then any pathetic sell out we’ve seen from the AGs. This is truly a insignifigant sum.

  7. Wake Up America! says:

    Even if they use all 15 million, where will the other 117 million be put to use? Plugging holes in the state budget tat have nothing to do with housing or the foreclosure crisis.

    This settlement has turned out to be a financial windfall for the states and once again, injured borrowers get shafted.

    • Fury says:

      the “settlement” is just one more bailout for the banksters.

      swindled homeowners who have lost their whole lives won’t see a dime.

      and forget about spending money on assistance programs. those consist of a freaking flier!
      they do zero to aid homeowners who have been defrauded.

      give us our money and homes back, you Con Artists!

  8. keepon says:

    Ed DeMarco, head of the Federal Housing Finance Agency — which oversees Fannie and Freddie — has stood in the way of (principal) reductions and he’s claimed the support of Fannie and Freddie. But that’s no longer the case. Even Fannie and Freddie now support principal reductions. It’s time for Ed DeMarco to step aside by signing this Whte House petition:


    • woodknotgo says:

      Thanks for the WhiteHouse Petition link- FANNIE & FREDDIE PRINCIPLE REDUCTIONS was started March 23-there is already 14,934 signatures-we need thousands more ! what a pia to sign up for account -but everyone should do this and pass it on to others.

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