Subprime Mortgage Litigation Outpacing S&L Crisis

[flashl]

The number of subprime-related lawsuits is outpacing those during the Savings and Loans crisis in the early 1990s, according to a release by Navigant Consulting Inc.

Per the study, subprime mortgage cases filed in 2007 alone equaled half of the 559 Savings and Loan suits over a multi-year period handled by the Resolution Trust Corporation, who oversees the liquidation of insolvent thrifts.

“The S&L crisis has been a high water mark in terms of the litigation fallout of a major financial crisis. The subprime-related cases appear on their way to eclipsing that benchmark,” said Jeff Nielsen, managing director of Navigant Consulting.

The number of filed lawsuits linked to subprime nearly doubled during the second half of 2007, from 97 to 181, with a total of 278 cases for the year.

The cases were made up of borrower class actions (43 percent), securities cases (22 percent), and commercial contract disputes (22 percent), as well as bankruptcy, employment, and others.

Fortune 1000 companies were named in more than half of the cases, and mortgage bankers and correspondents were the most common defendants, involved in about a third of the suits.

Truth About Mortgages

[sandnsea]

1. We had a chance to prevent this

If we hadn't let these mortgage companies intimidate everyone with threats about the evils of regulation and all the rest.

http://query.nytimes.com/gst/fullpage.html?res=9D07E2DE163EF937A35757C0A9679C8B63

[fasttense]

5. The mortgage corporations were just following the

idiotic, illogical, ridiculous "free market" Theories of economy developed by Milton Friedman.

http://en.wikipedia.org/wiki/Milton_Friedman

The bushes and McCain are proud followers of these unproven theories too.

Milton Friedman was the brains behind the Chilean Dictator, mass murderer and thief, Pinochet. They are both dead now but boy did they manage to create a huge amount of pain and suffering before they left this planet. It is people like them that make me want to believe in a hell.

[jtrockville]

2. There's a subject McCain is an expert on (the S&L crash)

Maybe this will become a plank in his platform.

[wellstone dem]

3. those blasted trial lawyers

out there fighting for the vulnerable again. I hate them.

[Yavin4]

4. Good News for Me!

I work in the Legal industry. When people lose money, they sue.