Mortgage Litigation Increased 54% in Q209
Disputes over real estate appraisals, loan modifications and foreclosures pushed a 54% increase in mortgage-related lawsuits, according to Second Quarter Mortgage Litigation Report from Dallas-based Mortgagedaily.com. The analysis is based on active cases covered by the Web site, which monitors investor litigation. There were 125 cases tracked in Q209, up from 81 in Q109 and 42 in Q209, led by investor lawsuits, which increased from 21 in Q109 to 31 in Q209. There were no modification cases in Q109, but as the Making Home Affordable Modification Program (HAMP) was initiated, 22 cases were filed in Q209, mostly against modification firms. Foreclosure cases more than doubled from 12 in Q109 to 26 in Q209. At the same time that the Home Valuation Code of Conduct was implemented, appraisal cases jumped from two in Q109 to 11 in Q209. Write to Austin Kilgore.