As housing market slumps, subprime suits skyrocket

It looks like all those law firms carving out subprime practice niches had the right idea.

A new report suggests that subprime-related lawsuits are outpacing litigation involving the saving and loan fallout of the 1990s.

According to a story in Corporate Counsel (via the ABA Journal) a new study by Navigant Consulting Inc. counted 448 subprime related lawsuits filed in a 15-month period from the beginning of 2007 to the spring of 2008. Compare that to 559 S&L related suits in a six year period from the late 1980s to the mid-1990s.

“What we saw in 2007 was a mild breaking wave compared to the tsunami we’re witnessing now,” Navigant managing director Jeff Nielsen told Corporate Counsel. “In the most recent quarter, we’re looking at approximately two filings per day, including weekends.”

About 86 percent of the subprime cases tracked by the Navigant study are still active, he said.


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