Lawsuits Against Lenders Increase In 2nd Quarter

Law360, New York (September 9, 2008, 12:00 AM EDT) -- With the mortgage and housing markets still in turmoil, the number of investor lawsuits against housing finance companies rose steadily in the second quarter.

According to the Second Quarter Mortgage Litigation Report released Tuesday by Morgagedaily.com, investors filed 14 lawsuits against mortgage companies, up from the nine investor or class action suits that were filed against mortgage originators in the first quarter of 2008.

“You've got dissatisfied investors who have seen stock values plummet and profits plummet,” said Sam Garcia, the publisher of Mortgagedaily.com.

According to...
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