Bill would make foreclosure robo-signing a felony

ALBANY - After making national headlines during the home foreclosure crisis, Attorney General Eric Schneiderman announced a proposal Wednesday to create a new crime in New York: foreclosure fraud.

The measure would make it a felony for firms to engage in "robo-signing," a fraudulent practice that allowed companies to rapidly pursue foreclosures, triggering an explosion in cases. In some instances, the practice led to unlawful foreclosure proceedings.