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The number of subprime-related court filings has reached an unprecedented level and is expected to continue skyrocketing as economic conditions worsen, according to a report by Chicago’s Navigant Consulting.
The number of subprime mortgage and related cases filed in federal court during the first nine months of 2008 already exceeds by more than 50% the total for all of 2007. A total of 448 cases were filed so far this year, compared to 294 last year.
Filing volume in the September 2008 quarter was the third highest on record with 131 new matters, while the total number of cases filed reached 742 for the 21-month period ending on September 30th.
Subprime-related cases have outstripped the savings-and-loan cases of the early 1990s, the previous high-water mark in terms of litigation fallout from a major financial crisis.
“The bottom line is that new cases continue to be filed much more rapidly than existing cases are being disposed,” said Navigant’s Jeff Nielsen.
Via National Law Journal.
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