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.

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