December 17 2010 (Jeff Alan)
As one might expect as an aftereffect of the mortgage crisis, the number of mortgage litigation cases increased by 41 percent in the third quarter of 2010 compared to the second quarter.
According to the Mortgage Litigation Index (MLI), which is based on cases covered by Mortgage Daily in conjunction with Patton Boggs, there were more than 100 civil and criminal mortgage-related cases tracked between July 1 through September 30 compared to 75 cases in the prior quarter.
Cases involving investor actions taken as a result of alleged violations to the Securities Exchange Act of 1934 outnumbered all other types, though activity was lower than in the second quarter. Coming in next were actions related to foreclosures, an area that has recently drawn intense scrutiny.
Patrick McManemin, a partner in Patton Boggs’ Dallas office stated, “In recent months, the focus of mortgage litigation has begun to transition from primarily consumer foreclosure disputes towards loan documentation and servicing issues. Therefore, an increase in residential note repurchase litigation from investors in securitization trusts and banks that face indemnity claims from government-sponsored enterprises should be expected.”
|Category||Q3 2010||Q2 2010||Q3 2009|
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Tags: mortgage litigation, mortgage crisis, litigation cases, investor actions, foreclosure, criminal, employment, banks