The New York attorney general sued some of the nation’s biggest banks on Friday, accusing them of unlawful and deceptive practices for relying on a private electronic registry that tracks mortgages.
Attorney General Eric Schneiderman on Friday sued Bank of America, Wells Fargo, JPMorgan Chase, as well as the Mortgage Electronic Registration System Inc. (MERS) in New York state court.
Schneiderman says that the banks created the electronic registry as an “end-run” around the public property recording system to help them more quickly buy and sell parts of mortgages. He said the system helped banks create “deceptive and fraudulent court submissions” and improperly foreclose on homeowners.
"Our action demonstrates that there is one set of rules for all — no matter how big or powerful the institution may be — and that those rules will be enforced vigorously," said Attorney General Schneiderman in a statement.
Eric Scheiderman is fast becoming one of my favorite politicians. It’s quite possible that he’s doing more to punish the big banks as AG than the entire SEC.