New statistics show mortgage servicing litigation rose 88% in the first quarter, validating Federal Deposit Insurance Corp. Chairman Sheila Bair when she sounded the alarm on an influx of lawsuits in May.
Bair said last month it's unknown how mortgage servicers will be impacted by a slew of lawsuits challenging the transfer of notes and the handling of loan documents. But, she still found the possibility of more litigation a worthy enough cause to share her thoughts on the subject with the Senate Banking Committee.
According to MortgageDaily.com's latest Mortgage Litigation Index, litigation against servicers rose 88% in the first quarter even as overall mortgage-related litigation remained unchanged from the previous quarter. There were 50 mortgage servicing lawsuits in the first three months of 2011 compared to only a handful a year earlier, MortgageDaily said.
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