Morgan Stanley To End 'Unlawful' NY Foreclosure Practices

Law360, New York (November 14, 2011, 7:05 PM EST) -- New York's banking regulator announced Thursday that Morgan Stanley and two mortgage servicing companies had pledged to end various “troublesome and unlawful practices” and reform their foreclosure practices.

“These new reforms are now spreading out into the industry at a time when homeowners truly need relief in the wake of the financial crisis,” Superintendent of Financial Services Benjamin M. Lawsky said in the statement Thursday.

Morgan Stanley, American Home Mortgage Servicing Inc. and Vericrest Financial Inc. agreed to end, among other things, the practice of robo-signing,...
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