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DALLAS - Legal actions tied to mortgage lending jumped by more than 40 percent in the third quarter of the year based on the Mortgage Litigation Index out Dec. 13.
Activity on more than 100 civil and criminal mortgage-related cases was tracked from July 1 through Sept. 30 in the report, which is based on cases covered by Mortgage Daily, a dominant source of news for the mortgage industry. The report was prepared in conjunction with Patton Boggs, a leader in mortgage banking litigation.
Activity leapt from the second quarter's 75 cases and was up similarly from the same period last year. 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.
"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," said Patrick McManemin, a partner in Patton Boggs' Dallas office.
The No. 3 category, criminal, jumped to 17 cases from 11 earlier in the year, and litigation tied to mortgage employment soared to 12 cases from just three.
Read the full report at: http://www.mortgagedaily.com/MortgageLitigationReport.asp?spcode=pr
Mortgage Litigation news: http://www.mortgagedaily.com/legal.asp?spcode=pr
Based in Washington, D.C., 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 www.PattonBoggs.com.
Founded in 1998, MortgageDaily.com is a dominant source of mortgage news and analysis for the mortgage industry. Around 1 million pages are viewed monthly at MortgageDaily.com and its affiliate publications.