On the same day that a panel of attorneys general from around the country are heralding a $26 billion settlement that could affect up to 2 million homeowners impacted by mortgage abuses, Department of Financial Services Superintendent Ben Lawsky announced the kickoff of an on the ground foreclosure relief effort.

The settlement is considered a major victory for New York Attorney General Eric Schneiderman, who had held out for a deal that would indemnify banks in the future. Schneiderman was named by President Obama to lead a nationwide unit that monitors mortgage abuses.

Lawsky’s department, formed as a merger between the departments of Insurance and Banking, has taken on much of the same duties as the attorney general’s office, furthering the perception that Gov. Andrew Cuomo is expanding his reach into his successor’s office.

The mortgage foreclosure unit here in New York has been in the works for a while now, with advocates and policymakers in the last months fearing a wave of foreclosures this year.

“Governor Cuomo has directed the Department of Financial Services to assist homeowners dealing with foreclosure or the risk of foreclosure,” Lawsky said in a statement. “Starting today, we will send staff and our command center wherever foreclosures are the biggest problem so we can be on the ground helping New Yorkers. Our message to homeowners is seek help as soon as you have a problem. The longer you wait, the harder it may be save your home.”

The effort is beginning today in Suffolk County, which has the highest number of home foreclosures in the state.

Here are the details via DFS:

Department specialists are staffing the Department’s Mobile Command Center from 8 a.m. through 7 p.m., Thursday at the Marketplace at Brentwood at 101 Wicks Rd. in Brentwood, Town of Islip.
Specialists can assess where homeowners are in the pre-foreclosure or foreclosure process and advise homeowners with respect to:
• Providing information about specific loan modifications available under federal law.
• Channeling aggrieved or abused homeowners to programs and agencies which are actively engaged in pursuing claims related to mortgage servicer abuses.
The Department also initiated a new foreclosure hotline, 1-800-269-0990 or 518-457-1654, open from 8:30 a.m. to 4:30 p.m., Monday through Friday. In addition, homeowners can file complaints on the Department website, www.dfs.ny.gov.

“We will do whatever we can to help New Yorkers struggling to save their homes. The hotline will be used to help homeowners understand how to protect their interests. We will also accept complaints by phone or on the Internet from homeowners who believe they were subjected to lender or mortgage servicer abuses so the Department can investigate,” Lawsky said.

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