Article
March 1, 2008
Expanding Subprime Mortgage Crisis Increases Litigation Risks
Published by The Brattle Group, Inc.
The credit quality problems that first appeared in subprime mortgages last year have begun to spread into other loan categories as we move further into 2008. Prime mortgages, home equity credit lines, vehicle loans, and credit card receivables are all showing increased rates of non-performance. Originators, servicers, guarantors, and securitizers of these loans face increased exposure to legal actions by disgruntled investors because these loans are major sources of collateral for securitized deals held by various types of investment funds.
