• Eric Schneiderman, the attorney general of New York State, at his offices in New York, Dec. 15, 2017. Schneiderman oversees an office that has repeatedly tangled with the Trump administration. The president has tweeted insults about Schneiderman, once calling him “dopey.” By moving to sue the Federal Communications Commission over net neutrality this month, his office took its 100th legal or administrative action against the Trump administration and congressional Republicans. (Sasha Maslov/The New York Times) Photo: SASHA MASLOV / NYTNS
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Eric Schneiderman, the attorney general of New York State, at his offices in New York, Dec. 15, 2017. Schneiderman oversees an office that has repeatedly tangled with the Trump administration. The president has tweeted insults about Schneiderman, once calling him “dopey.” By moving to sue the Federal Communications Commission over net neutrality this month, his office took its 100th legal or administrative action against the Trump administration and congressional Republicans. (Sasha Maslov/The New York Times) less
Eric Schneiderman, the attorney general of New York State, at his offices in New York, Dec. 15, 2017. Schneiderman oversees an office that has repeatedly tangled with the Trump administration. The president has ... more
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Attorney General Eric Schneiderman releases a report on voting rights across the state, detailing the results of his inquiry into the unprecedented level of voting complaints regarding the April 2016 presidential primary during a news conference at the Capitol Tuesday Dec. 6, 2016 in Albany, NY. (John Carl D'Annibale / Times Union) less
Attorney General Eric Schneiderman releases a report on voting rights across the state, detailing the results of his inquiry into the unprecedented level of voting complaints regarding the April 2016 ... more
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ALBANY — New York State has reached a $230 million settlement with UBS in connection to its commerce in residential mortgage-backed securities leading up to the 2008 financial crisis.

The settlement with the financial services giant, announced Wednesday by Attorney General Eric Schneiderman, includes $189 million to benefit New York homeowners and communities and $41 million in cash.

UBS is the seventh large financial institution to settle with Schneiderman's office since he was appointed co-chair of the federal RMBS Working Group in 2012. That effort has secured almost $4 billion in cash and consumer relief for New Yorkers — more than any other state, according to his office. (Combined with the 2012 National Mortgage Settlement, the total rises to more than $6 billion.)

"Today's settlement marks another key step forward as New Yorkers rebuild their lives and communities" a decade after the financial meltdown, Schneiderman said in a statement. "The dollars we've secured have funded critical housing programs across New York – and this settlement means even more community revitalization work in the years to come."

READ THE FULL SETTLEMENT.

As part of this settlement, UBS admits that, contrary to its public statements, UBS sold investors RMBS backed by mortgage loans based on inaccurate statements in prospectus supplements and/or investor presentations. The eventual crash resulted in lost investment revenue and a steep decrease in property values.

"During this time, UBS's diligence vendors determined that loans sold by the loan originators to UBS did not conform to underwriting guidelines; yet UBS packaged and sold them anyway," Schneiderman's office said in a release. The company either looked away or failed to look hard enough at the originators of these loans, and continued to buy and securitize them.

Adam Zaranko, president of the New York Land Bank Association and executive director of the Albany County Land Bank, thanked Schneiderman "for holding large financial institutions accountable for their role in the financial crisis and for reinvesting the settlement funds back into our communities. ... These much needed funds will help revitalize neighborhoods throughout the state and transform foreclosed, vacant or abandoned properties into safe and affordable homes for more New Yorkers."