The rising number of MBS lawsuits drove the mortgage litigation index to its highest level since it was first issued in 2007.
In 3Q11, the Mortgage Litigation Index from MortgageDaily.com came in at 218 total cases. The report was prepared together with Patton Boggs and reflects activity covered by MortgageDaily.com.
The count was up from 190 2Q11 cases and 151 in the same period a year earlier, 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. 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,” said Patton Boggs Partner Patrick McManemin.
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.
