New York, Federal Office to Cooperate in Mortgage Probes

December 20, 2011

New York and federal officials will cooperate in investigations of banks bundling mortgages into troubled securities that helped cause the 2008 Wall Street collapse.

Attorney General Eric Schneiderman and Steve Linick, the inspector general of the Federal Housing Finance Agency, have signed an agreement to share documents and findings. Linick’s office oversees the taxpayer-owned mortgage giants Fannie Mae and Freddie Mac.

Schneiderman has faulted a proposed 50-state settlement that would curtail probes of mortgage and investment practices.

In a lawsuit filed last Friday in New York, the Securities and Exchange Commission brought civil fraud charges against six former executives at Fannie Mae and Freddie Mac.

A spokesman said Monday that Schneiderman is working with all partners committed to getting to the bottom of the mortgage crisis and holding those responsible accountable.

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