Collapsed market landed hardest on state, Cuomo says
State Attorney General Andrew M. Cuomo decried the “Ponzi scheme that collapsed the mortgage market” while in Buffalo on Monday, warning that New York State stands to be hardest hit by what many are calling the worst financial crisis since the Great Depression.
“When you see these institutions closing or shrinking, that is more impactful on the state of New York than any other state, because those jobs were here,” Cuomo said.
The attorney general, in town to announce a new Web site to combat home improvement scams, said his office has made investigating mortgage fraud and secondary-mortgage fraud cases a priority for some time.
“Banks were taking fraudulent mortgages, pooling them and securitizing them, and it was a scheme that went on for a decade. The bank presidents got very rich, and it worked until it didn’t work, like any scam we see,” Cuomo said.
“It’s been a grave concern of ours since day one, and it’s a national tragedy and a national crisis. I ask, ‘Where were the federal regulators during all of this, all those levels of regulation and oversight?’ ”
Cuomo was touted by Republican nominee John McCain in Monday’s New York Times as a possible head of the Securities and Exchange Commission in a McCain administration. Cuomo, a Democrat and Barack Obama supporter, said it would be improper to comment because his department has ongoing investigations with the SEC.
One of the main areas of complaints the attorney general’s office receives in Western and Upstate New York concerns home improvement contractors because, unlike in New York City and Long Island, the contractors don’t have to be licensed.
“Since I’ve been attorney general, we have had 1,500 complaints handled by my office — and those are just the ones handled — so it is a big problem,” Cuomo said.
He unveiled the Web site w w w . n yknowyourcontractor. com to help consumers avoid home improvement scams and dishonest contractors. The site allows people to check for local contractors who are subject to legal action, or who have substantiated consumer complaints filed against them.
The Web site also offers tips on what consumers should do before hiring a contractor, links to government agencies and consumer groups and information on how to file a complaint against a contractor with the attorney general’s office.
“Rather than being in the cleanup business [after there’s a problem], we want to be in the prevention business. Before you sign the contract, call the attorney general’s office. Before you sign the contract, check on the Web site to make sure who you are contracting with is a bona fide contractor,” Cuomo said.
Charles Bell, programs director for Consumers Union, which publishes Consumer Reports magazine, praised the Web site and Cuomo for “bringing a consumer-oriented focus to state government.”
“We believe this is a smart solution to a systemic problem, and ought to be an essential first step for anyone in New York State looking to make a home improvement or repair,” Bell said.
