President Obama is expected to announce the creation of a Mortgage Crisis unit that will probe misconduct leading up to the housing bust, according to a person familiar with the announcement.

The office will be a new unit in the president’s Financial Fraud Enforcement Task Force and will be chaired by New York Atty. Gen. Eric Schneiderman, according to the person, who was not authorized to speak publicly on the matter.

The development was first reported by The Huffington Post.

Schneiderman has been the most vociferous critic of a proposed $25-billion settlement involving attorneys general, federal agencies and the mortgage industry over foreclosure and mortgage servicing abuses.

Liberal activists and some lawmakers have criticized the ongoing settlement talks, arguing that the Obama administration should launch a broad investigation into the mortgage practices of big banks and push for a settlement that is tougher on the banks.

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