In January 2012, President Obama announced the formation of a Residential Mortgage-Backed Securities Working Group to continue investigating the foreclosure crisis. That working group is co-chaired by the Attorney General, along with Housing and Urban Development (HUD) Secretary Shaun Donovan, and Securities and Exchange Commission (SEC) Director of Enforcement Robert Khuzami, and includes the IRS, the Consumer Financial Protection Bureau and other government entities. This combination of state and federal agencies gives the working group the resources it needs, as well as the broadest possible jurisdiction to continue investigating those responsible for misconduct that contributed to the economic crisis through the pooling and sale of residential mortgage-backed securities.
As co-chair of the Working Group, the New York Attorney General launched several investigations into the role of banking institutions in the creation of the mortgage bubble and its subsequent crash, resulting in comprehensive lawsuits. In addition, the Attorney General reached two historic settlements with JP Morgan and Bank of America regarding their role in the crisis. Since 2011, the office’s many settlements with the banks have secured more than $4 billion in relief for struggling New York homeowners.