Wednesday, January 11, 2012

Overall Mortgage Litigation Rises; Servicing Litigation Declines

In the third quarter of 2011, mortgage lawsuits reached their highest level since the Mortgage Litigation Index began tracking them in 2007; however, lawsuits involving servicers declined over the quarter.

The index, tracked by MortgageDaily.com and prepared along with Patton Boggs LLP, observed 218 cases over the


quarter, up from 190 the previous quarter and 151 cases in the same quarter last year.

Litigation against servicers dropped from 65 cases in the second quarter to 51 cases in the third quarter. However, the number is up significantly from the third quarter of 2010 when the index reported just five cases involving servicers.

The only other type of mortgage litigation to decline in the third quarter, according to the index, was criminal litigation, which declined from 44 cases in the second quarter of 2011 to 34 cases in the third quarter.

With 90 cases, foreclosure litigation made up the greatest portion of the 218 mortgage lawsuits in the third quarter.

Investor lawsuits followed with 82 cases, having risen from 50 cases the previous quarter.

The mortgage-backed securities category saw the greatest increase over the quarter, rising from 26 cases in the second quarter of 2011 to 62 cases in the third quarter.

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