Forecasting Litigation and Settlement Trends in the Mortgage Servicing and Fair Lending Context

October 22, 2018 3:25pm

James W. Brody, Esq.
Mortgage Banking Practice Group Chair
Johnston Thomas (Santa Rosa, CA)

Austin K. Brown
Counsel; Litigation, Government Enforcement & White Collar Crime
Skadden, Arps, Slate, Meagher & Flom LLP (Washington, DC)

Valerie L. Hletko
Buckley Sandler LLP (Washington, DC)

Residential mortgage litigation is replete with challenges related to pre-emption, mortgage insurance, assignments, and ascertainability. These areas are often pose difficulty throughout the course of the litigation and settlement. This panel will address these challenges as well as the following matters:

Survey of mortgage servicing litigation, settlement trends, and key cases across various jurisdictions

  • Interpreting Lusnak v. Bank of America on pre-emption of state laws and paying interest on escrow accounts
  • Assessing the court’s opinion on Fried v. JP Morgan Chase on mortgage insurance
  • Understanding Yvanova case on assignments and whether title is affected
  • Examining residential mortgage backed securities litigation based on breach of representation and warranties

Class action trends

  • Exploring the potential class action litigation trend where plaintiffs are “deemed discharged” from past deficiencies from residential mortgage properties but mortgage servicers are unaware
  • Examining recent federal court scrutiny of class action litigation settlements and its impact for the residential mortgage industry
  • Interpreting the effect of In re: Hyundai and Kia Fuel Economy Litigation on nationwide class action settlements
  • Reassessing the class action litigation landscape with Fair Lending and ECOA violations
  • Appropriately defining a class and understanding ascertainability challenges with class action litigation
  • Reassessing class action settlements by the DOJ via the method of filing of an objection and what this means for the future of residential mortgage litigation