Activity leapt from the second quarter's 75 cases and was up similarly from the same period last year. Cases involving investor actions taken as a result of alleged violations to the Securities Exchange Act of 1934 outnumbered all other types, though activity was lower than in the second quarter. Coming in next were actions related to foreclosures, an area that has recently drawn intense scrutiny.
"In recent months, the focus of mortgage litigation has begun to transition from primarily consumer foreclosure disputes towards loan documentation and servicing issues. Therefore, an increase in residential note repurchase litigation from investors in securitization trusts and banks that face indemnity claims from government-sponsored enterprises should be expected," said Patrick McManemin, a partner in Patton Boggs' Dallas office.
The No. 3 category, criminal, jumped to 17 cases from 11 earlier in the year, and litigation tied to mortgage employment soared to 12 cases from just three.