DALLAS, June 20, 2011 /PRNewswire/ -- Mortgage servicing litigation increased 88 percent during the first quarter, according to the latest Mortgage Litigation Index from MortgageDaily.com. However, investor-related litigation activity eased, fewer loan modification actions were tracked and the overall level of mortgage-related litigation held steady.

There were 151 mortgage-related lawsuits tracked in the First Quarter 2011 Mortgage Litigation Index. No change occurred from the prior quarter's index, while activity eased from the same time last year.

The report, which reflects cases covered in stories published by MortgageDaily.com, was prepared in conjunction with Patton Boggs LLP.

Mortgage servicing lawsuits totaled almost 50, nearly doubling from the prior period. Only a handful of servicer actions were recorded for the first-quarter 2010. Close behind were foreclosure cases. This category includes disputed foreclosure actions with rulings in favor of the borrowers and activity related to foreclosure-rescue schemes.

Litigation filed on behalf of investors and lawsuits involving loan modifications declined from the fourth quarter.

"The dramatic increase in mortgage servicing lawsuits is due to heightened focus from regulators, bankruptcy trustees and other parties on servicers' alleged failure to implement and follow procedures for collection and modification of loans as well as foreclosures," says Patrick McManemin, partner in Patton Boggs' Dallas office. "We expect that all aspects of servicing litigation will remain active as state and federal regulators as well as financial institutions, investors' bankruptcy trustees and borrowers continually seek new avenues to pursue claims based on servicers' conduct."

Top Litigation Categories*

*Category totals don't add up because many cases were counted in more than one category.

Read the full report at:

http://www.mortgagedaily.com/MortgageLitigationReport.asp?spcode=pr

Mortgage Litigation news:

http://www.mortgagedaily.com/legal.asp?spcode=pr

About Patton Boggs LLP

Based in Washington DC, Patton Boggs LLP is a national leader in public policy and regulatory, litigation and business law, and is well known for its deep bipartisan roots in the national political arena. The firm's core practice areas are Public Policy and Regulatory, Litigation, Business and Intellectual Property. For more information, visit us at www.PattonBoggs.com.

About MortgageDaily.com

Founded in 1998, MortgageDaily.com is a dominant online source of mortgage news and analysis for the mortgage industry.

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Melissa A. Green
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SOURCE MortgageDaily.com

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