State Officials Blame Feds for Not Addressing Lending Crisis

New York, NY —

As New York Attorney General Andrew Cuomo expands his investigation in the mortgage industry, Governor Spitzer says he's directed his staff to work with the Legislature to craft laws that address the foreclosure crisis.

SPITZER: We are going to write new laws that are tighter, that are more prescriptive, that are more effective in terms of preventing the issuance of the sorts of loans that have these enormously negative effects.

REPORTER: Spitzer said the laws would require lenders to examine a borrower's ability to pay and credit history before issuing a loan. The governor is also pumping $2 million into organizations that are counseling homeowners in foreclosure. He stood next to Cuomo at today's press conference.

Their relationship has been tense ever since the AG alleged the governor's staff had improperly used the state police to generate negative news coverage about the Republican Senate majority leader Joseph Bruno. Today, the two appeared friendly, joking and praising the work each had done relating to the foreclosure crisis.