Lender Liability Lawyers
Lender Liability as a body of law has changed dramatically in the last several years. Beginning in the 1980’s, the nation saw a period of unprecedented economic growth. At the same, the nation saw a period of deregulation. The result is that banks have too much power and even large businesses are seemingly at the mercy of banks.
During the Great Depression, banks were highly regulated and restricted in their activities. Those restrictions began falling by the wayside during the 1990’s. President Clinton declared that restrictions were no longer necessary and Congress responded with the Gramm-Leach-Bliley Act which largely deregulated banks.
By 2007, the housing and mortgage market had reached its boiling point. The subsequent crash in 2008, businesses and consumers alike learned the real truth: it was widespread banking abuses and greed that led to millions of foreclosures and displaced families, the failure of dozens of banks and the two principal mortgage guaranty agencies – Freddie Mac and Fannie Mae, and millions of people without jobs.
The crisis of 2008 also resulted in ten of thousands of lawsuits against banks. This area of law – Lender Liability – is still evolving. For borrowers and banks customers, the changes in the law have been mostly for the better. Gone are the days when judges and juries simply accepted whatever banks said.
Robosigning, MERS problems, predatory lender schemes, TARP fraud and outright fraud and greed by bankers is a huge problem. For many victims of bank fraud, however, finding an affordable and qualified lender liability lawyer remains very difficult. Banks have very deep pockets and lots of money to spend on lawyers. Most customer agreements are also highly biased in favor of lenders and banks.
Yet another problem is the lack of qualified lawyers willing to sue banks. On the micro level there are a growing number of lawyers competent to handle home mortgage foreclosure defense. Few lawyers, however, have the ability to sue banks regarding commercial loans, mortgage commitments, loan securitization issues and CMBS problems.
Quite simply, most commercial banking lawyers work for defense firms. In other words, they represent banks. Even if they don’t have a direct conflict of interest they still will not take a case on behalf of a borrower for fear it would offend their other banking clients.
Until now, victims of bank fraud had few options. We have seen bankruptcy lawyers, residential real estate lawyers and even a few personal injury firms trying to step into the void. Often the results are poor, however.
The law firms of Judge, Lang Katers and MahanyLaw combined forces in 2013 to provide a viable, effective option for fighting back against banks.
Brian Mahany and his firm have successfully litigated the largest false claims act case in U.S. history against a bank. Brian served as a lead counsel in the record breaking $16.65 billion settlement with Bank of America. He also filed one of the first False Claims Act actions in the aftermath of the 2008 crisis, the $2.4 billion case against Allied Home Mortgage Company.
Chris Katers and Brian Mahany have represented dozens of tenant-in-common investors (TICs) in claims against U.S. Bank, CWCapital, LNR Partners and Wells Fargo, some of the biggest names in the banking and Commercial Mortgage Back Securities (CMBS) arena.
Chris Katers partner Bill Judge is the co-owner of a successful title company (U.S. Title) with years of experience in commercial loan transactions. Together the lawyers at both firms bring over a century of experience; experience that is truly difficult to find.
Our premise is simple, we make sure banks, CMBS trusts, servicers and other financial institutions treat their borrowers and customers fairly. We don’t let banks “steamroll” our clients and we work to find creative ways to make fighting big banks financially feasible.
Typically, lender liability claims arise when a financial institution or fiduciary violates a duty of good faith or fair dealing to its customer / borrower or has assumed such a degree of control over the borrower that it assumes a fiduciary duty. Examples include:
- Failure to Honor Commitment: Wrongfully failing to honor a loan commitment;
- Failure to Renew a Loan: Wrongfully failing to renew loans;
- Improper Default Notices: Deliberately creating a technical default or wrongfully declaring a default in order to generate fees and penalties or acquire the property;
- Improper Foreclosures: Improperly foreclosing a mortgage or a security agreement without giving proper notice or following proper legal procedures;
- Improper Guarantee Enforcement: Improperly enforcing personal guarantees;
- Improper Acceleration: Improperly accelerating future provisions and enforcement of cross default provisions often found in loan documents;
- Wrongful Interference: Wrongfully interfering with a borrower s day-to-day activities or the borrower s contractual relations with third parties;
- Fiduciary Duty Breach: Breaching a fiduciary duty that the lender may have assumed with respect to the borrower.
If you feel that you have been unfairly treated by a bank, mortgage company, servicer, trustee, special servicer or other financial professional, call us. We don t represent banks, we sue banks. Our lawyers have successfully litigated large claims against banks and we understand this rapidly changing area of law.
Don t suffer another day. Call our experienced lender liability lawyers for a no-fee, no-obligation consultation to learn your options: 877.858.8018.