New Yorkers May Lose Their Retirement Investments Due To Foreclosure Practices

Many New Yorkers are already struggling with mounting mortgage and the threat of foreclosure; however, some may be losing out on retirement investments due to the housing industry's recent controversies.

The recent improper foreclosures of some homeowners have put big banks such as Bank of America, Citigroup, JPMorgan and Wells Fargo on the hook for billions in liabilities. As a result, the many holders of pension funds are calling on the lenders to conduct a review of their practices.

"We don’t know exactly what the banks were doing, and we don’t know if they did it right," said New York State Comptroller Thomas DiNapoli. "Millions of families have lost their homes, and the investments of the million members of the Common Retirement System have been put at risk."

Led by New York City Comptroller John Liu, five of the area's pension funds called for the banks to conduct an internal audit on the foreclosure process. If any of the financial institutions were to be found guilty of negligent practices, they end up making big payouts that add to the debts of many retirees who are already struggling under increased fiscal burdens.