MBS, Foreclosure Lawsuits Jump
Mortgage-backed securities investors led an increase in mortgage-related lawsuits, according to the First Quarter Mortgage Litigation Report from MortgageDaily.com. A rise in foreclosure lawsuits also contributed to the increase.
The analysis, based on active cases covered by MortgageDaily.com, was prepared in conjunction with the law firm of Weiner Brodsky Sidman Kider PC, which is known as a leader for its work in mortgage banking litigation.
During the first quarter, 81 cases were tracked -- jumping from under 50 the prior quarter and prior year.
MBS lawsuits jumped to 13 cases from the prior quarter's four. The increase in MBS filings helped push investor class actions to 21 cases -- the most of any type.
Cases tied to foreclosures, including actions against foreclosure-rescue services, leapt to 12 from the prior period's four. The following table highlights some active categories.
Category Q1 2009 Q4 2008 Q1 2008
Total 81 46 42
Compliance 8 6 1
Discrimination 5 2 2
Foreclosures 12 3 9
Investor 21 11 9
MBS 13 4 0
Mortgage Fraud 5 5 3
Secondary Marketing 5 3 9
Servicing 6 3 6
Wachovia was named as a defendant in eight of the cases tracked by MortgageDaily.com -- more than any other company. Parent Wells Fargo was named in five.
Only two lawsuits covered by MortgageDaily.com named Bank of America as a defendant. But subsidiaries Countrywide and Merrill Lynch were named in nine.
Company # Cases reported
Bank of America 2
Merrill Lynch 3
Washington Mutual 2
Wells Fargo 5
Read the full first-quarter report at :
Mortgage Litigation news
Founded in 1998, http://www.mortgagedaily.com/ provides online mortgage news and analysis for the mortgage industry. Around 1 million news pages are viewed monthly at MortgageDaily.com and its affiliate publications.
About Weiner Brodsky Sidman Kider PC
Weiner Brodsky Sidman Kider PC has a nationwide residential mortgage banking and financial services practice that offers full-service legal representation and counseling for clients, with teams devoted to federal and state licensing and regulatory compliance, transactions, representation before government agencies and litigation, including the defense of nationwide class action lawsuits against financial institutions and settlement service providers. Read more about Weiner Brodsky at http://www.wbsk.com/.
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