MBS Actions Drive Mortgage Litigation Index to Record High
DALLAS, Jan. 9, 2012 /PRNewswire/ -- Mortgage lawsuits ascended to the highest level since the Mortgage Litigation Index was first issued for 2007. While foreclosure and investor litigation played a role in the surge, cases involving mortgage-backed securities had the biggest impact.
The Third Quarter 2011 Mortgage Litigation Index from MortgageDaily.com came in at 218 total cases. The report was prepared in conjunction with Patton Boggs LLP and reflects activity covered by MortgageDaily.com.
The count was up from 190 second-quarter cases and 151 in the same period a year earlier.
Helping to drive overall activity up were foreclosure cases, which jumped from 67 in the second quarter to 90 -- the most of any category. Foreclosure litigation includes actions challenging the foreclosure process and complaints against foreclosure-rescue firms.
But it was the No. 3 category, MBS litigation, that had the biggest impact on the latest index, with MBS cases rising by 36 from the second quarter.
"The increase in MBS litigation is partly driven by statutes of limitations on investors' claims," says Patton Boggs Partner Patrick McManemin. "State claims against originators for alleged mishandling of portfolios, inadequate underwriting practices and misrepresentations regarding loan quality on the part of private and GSE litigants can only be preserved by filing lawsuits before claims expire."
Top Categories*
| Category |
Q3 2011 |
Q2 2011 |
Q3 2010 |
| Total |
218 |
190 |
151 |
| Foreclosure |
90 |
67 |
21 |
| Investor |
82 |
50 |
23 |
| MBS |
62 |
26 |
12 |
| Servicing |
51 |
65 |
5 |
| Criminal |
34 |
44 |
17 |
*totals don't add up because many cases counted in more than one category.
Servicers spent less time in court, with the case count falling to 51 from the second quarter's 65. Also lower were criminal actions, which fell to 34 tracked cases from 44 the previous quarter.
Read the full report at:
http://www.mortgagedaily.com/MortgageLitigationReport.asp?spcode=pr
Mortgage Litigation news:
http://www.mortgagedaily.com/legal.asp?spcode=pr
About Patton Boggs LLP
Based in Washington DC, Patton Boggs LLP is a national leader in public policy and regulatory, litigation and business law, and is well known for its deep bipartisan roots in the national political arena. The firm's core practice areas are Public Policy and Regulatory, Litigation, Business and Intellectual Property. For more information, visit us at www.PattonBoggs.com.
About MortgageDaily.com
Founded in 1998, MortgageDaily.com is a dominant online source of mortgage news and analysis for the mortgage industry.
CONTACT:
Melissa A. Green
202.457.5299
SOURCE MortgageDaily.com
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