"Today’s agreement is another victory in our efforts to help New Yorkers rebuild in the wake of the financial devastation caused by major banks," Schneiderman stated on Thursday.
The funds will provide "community-level relief" to New York residents seeking loan reductions to avoid foreclosures as well as resources to transform code enforcement systems to prevent the origination of faulty loans in the future.
"Mayors across the state have been dealing with the impact of the financial crisis for years now," White Plains mayor Tom Roach said. "The settlement funds will have a huge impact, helping homeowners who continue to struggle and are in need of mortgage relief."
According to the New York Attorney General’s Office, Morgan Stanley committed numerous misconducts in the years leading up to the 2008 financial crisis, including the implementation of faulty prescreening practices and knowingly approving faulty loans.
A global financial crisis began in the United States in late 2007 when the housing and credit bubbles burst, affecting financial institutions around the world.