Mortgage-related lawsuits on the rise

The National Law Journal (5/26, Baldas) reported, “Mortgage-related lawsuits are on the rise, with homeowners and investors alike suing over allegedly being duped by the mortgage industry.” The lawsuits “tied to foreclosures, including actions against foreclosure-rescue firms, jumped to 12, triple from the four cases in the prior period.” In addition, “lawsuits filed by mortgage-backed securities investors also increased, from four to 13, which pushed investor class actions to 21 cases – the most of any type.” However, “attorneys involved in mortgage banking regulatory matters” are not surprised. Michael Waldron, a partner in the Dallas office of Washington’s Weiner Brodsky Sidman Kider, said, “A trend like this is not uncommon when what you’re talking about is, essentially, the aftermath or effects of an industrywide crisis.”