Update on Loan Modification Litigation

Loan modification litigation is part of the current wave in consumer finance litigation. With the near collapse of the residential real estate market in 2008, and lingering fallout at least through 2010, origination-based lawsuits against loan originators alleging predatory lending have slowed dramatically. Many of the major players in sub-prime lending have ceased to exist, and even more of the smaller players have disappeared. As noted in this survey, the plaintiffs' bar has concentrated much of its efforts against loan servicers who, for the most part, are immune from direct liability for the origination practices of others. Adapted from the source document.