NEW YORK CITY-New York State Attorney General Eric Schneiderman has been selected by President Barack Obama to chair a special unit of investigators that will crack down on the misconduct that contributed to the housing bubble and market crash. The announcement, first reported by the Huffington Post, will be part of the White House’s new office on Mortgage Origination and Securitization Abuses, as outlined by Obama during his “State of the Union” address on Tuesday evening.

"The American people deserve a robust and comprehensive investigation into the global financial meltdown to ensure nothing like it ever happens again, and today's announcement is a major step in the right direction,” Obama said, during his speech. “In 2008, the house of cards collapsed. We learned that mortgages had been sold to people who couldn’t afford or understand them. Banks had made huge bets and bonuses with other people’s money. Regulators had looked the other way, or didn’t have the authority to stop the bad behavior. It was wrong. It was irresponsible. And it plunged our economy into a crisis that put millions out of work, saddled us with more debt, and left innocent, hardworking Americans holding the bag.”

According to White House documents cited by HuffPo, the unit will take a three-pronged approach: holding financial institutions accountable for violating the law, compensating victims and providing relief for homeowners struggling from the real estate downturn. The group will operate as part of the President’s Financial Fraud Enforcement Task Force, and will not supersede the efforts already underway by the Department of Justice.