New York Community Bancorp is a Savings and Loan whom makes most of it's money by lending to homeowners in New York.
Here is a press release from Cuomo
WASHINGTON, D.C (November 5, 2007) – New York Attorney General Andrew M. Cuomo today endorsed federal legislation that will create new protections for consumers and investors and prohibit the improper coercion of appraisers to meet target appraisals.
The bill, the Escrow, Appraisal, and Mortgage Servicing Improvements Act (H.R. 3837), sponsored by Representative Paul E. Kanjorski (D-PA), the Chair of the House Financial Services Capital Markets, Insurance, and Government Sponsored Enterprises Subcommittee, will institute new safeguards to protect against fraud in the appraisal industry.
Attorney General Cuomo endorsed the legislation after meeting with members of Congress to brief them on the findings of his nine month investigation into the mortgage industry. The bill is expected to be considered at a Financial Services Committee markup on Tuesday, November 6.
“My office’s investigation of the housing market has found systematic conflicts of interest in the appraisal industry that clearly necessitate legislation,” said Attorney General Cuomo. “Government regulation can help the marketplace by providing protections for investors and consumers alike. Representative Kanjorski’s bill is a big step forward in remedying some of the bad practices that have led to the foreclosure crisis facing our nation today, and I applaud his efforts.”
Last week Attorney General Cuomo filed suit against one of the nation’s largest real estate appraisal management companies and its parent corporation for colluding with the largest savings and loan in the country to inflate the appraisal values of homes. In a scheme detailed in numerous e-mails, eAppraiseIT, a subsidiary of First American Corporation (NYSE: FAF), caved to pressure from Washington Mutual (“WaMu”) (NYSE: WM) to use a list of preferred “Proven Appraisers” who provided inflated appraisals on homes. E-mails also show that executives at eAppraiseIT knew their behavior was illegal, but intentionally broke the law to secure future business with WaMu.
You may ask yourself why would he attack an out of state and the largest mortgage lender? Why not attack a local one. One in his jursidication and one in which he has legal authority to attack. By claiming it was someoens fault in Washington state he leaves it up to the Feds to attack Washington Mutual.
There was once a politician that wanted to be govenor of Illinois. George Ryan was the Seceraty of State - as such part of his job was to oversee the road construction budget.. Everyone "knows" highway contractors are corrupt. Accuse them of criminal activites and throw them into a court room and you are bond to get a conviction. A conviction that will show the people that you are on "their" side. One small hitch. Ryan was liar with an agenda. He ultimentally went to prison for Racketeering, but not untill after a lot of innocient people went to prison so that he could become govenor.
Cuomo seems to have learn something from Ryan. The accusation he tossed out there regarding a West Coast savings and loan is out of his jurisdiction. So he will never go to prison for the false imprisonment of any of it's employees since he has no auhority to imprison them. But think about the accusation. The banks want the equity to debt ratio to be as high as possible. Would a comission salemen care? Probably not... So would it make sense for the bank to have a list of acceptable appaisers to help insure a bad loan does not sink them? Hell yes. Common sense says the bank is on the same page as Coumo. Inflated appraisal are bad. THEY WOULD WANT TO KNOW OF ANY EMPLOYEES AND HOMEOWNERS WHO PARTICPATED IN A FALSIFIED APPRAISAL.. Cuomo knows this. But he has politcal ambitions.
Coumo knows he can't levy a direct attack against a local Savings and Loan, or he will go to prison like Ryan. But why isn't what he did already a crime? And if it is, wouldn't that make the New York Attorney General office a criminal orginization?
Andrew M. Cuomo will be investigated for racketeering. Our country cannot let another George Ryan make a mockery of the judical system. Even if he is sly enough to accuse someone outside his jurisdiction.
$17.43 (11/06/07)
