Despite a surge in actions taken by bank regulators, overall mortgage litigation eased at the end of last year, according to a study prepared by the D.C. law firm of ""Weiner Brodsky Sidman Kider PC"":http://www.wbsk.com.
The firm tracked a total of 202 active cases in the fourth quarter report. The biggest volume of activity was with regulatory actions, which jumped to 161 from the third quarter's 126 - a reflection of deteriorating capital at the weakest U.S. banks. However, non-regulatory actions dropped to 46 cases -- down from 74 cases in the third quarter, but about the same as the quarterly average for 2007.
After no third-quarter activity, the report cited four mortgage-backed securities (MBS) lawsuits, three mortgage employment lawsuits, and three suitability cases in the fourth quarter.
Most categories, however, saw a decline during the fourth quarter. The report showed that cases tied to mortgage compliance tumbled from 18 in the third quarter to six during the latest period. Mortgage fraud litigation was down similarly, falling from 18 to five cases in the fourth quarter. Secondary marketing lawsuits fell from 12 cases to just three. According to the report, investor class actions also eased, representing just 11 cases.
Mortgage fee lawsuits were down by half in the fourth quarter, while predatory lending actions declined 43 percent, the firm said. Likely reflecting private and public efforts to stem foreclosures, fourth-quarter foreclosure lawsuits were also down, off by more than 50 percent.