Litigation Defense

Lenders, Mortgage Bankers, Investors and Servicers are increasingly the targets of lawsuits from homeowners and other entities.  The purpose of the lawsuit is to delay foreclosure, claim Predatory Lending violations, or force loans to be “repurchased” by originating lenders or sellers.  LFI Analytics to assist in the defense of these lawsuits.

To defend against such lawsuits, lenders hire law firms to represent them in court.  The law firms are “burdened” with an overwhelming number of cases, and have problems devoting the necessary resources to each case. 

Additionally, most of the law firms have only a very general sense of the issues related to lending and foreclosure defense.  Their responses to the lawsuits take the form of “standardized” demurrers.  

Foreclosure defense attorneys are using new and creative arguments for their clients.  The arguments may have no basis in fact, but unless the lender’s attorney is well versed in the subject matter, the attorney is at a loss of how to respond and lack the expertise.  This results in ever increasing unknown litigation costs to the Lender.

The Plaintiff’s attorney is only slightly better versed in the subject matter than the Defendant’s attorney.  The Plaintiff’s attorney has only reviewed the loan documents provided to the borrower at closing, and then any foreclosure related documents provided the borrower at a later date.  He has no access to the lender’s file, until Discovery can be initiated.

Unknown to the lender or their attorney, the complete loan file can offer a comprehensive and complete defense to most lawsuits.  A thorough and extensive examination of the lender's file will provide the necessary facts needed for a successful demurrer, or request for dismissal. It also provides the "road map" for a successful Deposition & Trial.

LFI Analytics offers a Litigation Defense Exam for the Lender or Servicer who is the subject of litigation. A full and comprehensive examination of the complete loan file is conducted.  All aspects of the loan and the borrower are reviewed to determine the actual circumstances of the loan.  Foreclosure and loan modification efforts are also reviewed so as to show compliance with both state and federal statutes.

The exam may be used to not just defend against the lawsuit, but to also allow for a Lender Countersuit to be initiated, if desired.