Subprime Lending

As Troubles for Subprime Borrowers Grow, So Too Does Litigation Risk 

Nearly one in four subprime mortgage deals issued in 2006 had a delinquency rate of at least 8 percent as of December, according to a recent report issued by Credit Suisse that looked at loans at least 60 days past due. “With rising default rates among subprime borrowers, lenders will be faced with the potential for increased litigation and an ever-growing hostile regulatory environment,� said Andrew K. Stutzman, mortgage & lending litigation chair at Stradley Ronon Stevens & Young, LLP, a 160-plus attorney firm headquartered in Philadelphia.