State attorneys general are stepping up the legal pressure on the mortgage industry, but it is unclear whether their response to the subprime market fallout will actually lead to a glut of lawsuits.

At the forefront of the legal battle against the industry has been Marc Dann, attorney general for Ohio, who has sued more than a dozen lenders and brokers for allegedly engaging in various unscrupulous practices against borrowers. "I'm committed to ridding this state of appraisal inflation and other symptoms of mortgage fraud that has ripped families apart and led to an unprecedented number of foreclosures in this state," Dann said in a statement in June.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.