The last financial crisis shined a harsh light on the legal exposure of lenders, loan servicers, sponsors and trustees, when investors and other participants in the credit markets incurred losses. The collapse of the subprime mortgage securitization market, in particular, brought a wave of litigation — by investors and deal counterparties claiming contractual breaches and outright fraud — that continues to this day. This litigation has created a roadmap for new plaintiffs to follow, escalating the stakes for defendants.
Our attorneys have been actively representing participants in the credit markets and the litigation they face, gaining deep experience in protecting and enforcing their rights at each stage of a market’s evolution.
Through our proprietary site, Credit Chronometer, we provide insights on economic, political and legal developments that affect subprime auto lending, residential and commercial mortgages, fintech and student lending. We stay ahead of the curve on emerging issues, such as the challenges of financing cannabis-related businesses and regulatory changes that impact lending and servicing in the most significant consumer markets.
A Multidisciplinary Approach
Clients have stayed with us as their needs arising from lending transactions and structured finance products evolve over time. These needs range from investing in new business relationships and loan origination platforms, to the management of asset portfolios and servicing, to the insolvencies of counterparties and litigation over loss allocations.
For many of our clients, protections and remedies are enforced when borrowers or counterparties enter bankruptcy, which happens with increasing frequency in times of economic flux. Whether the matter is in or outside of bankruptcy court, we litigate when needed and negotiate settlements when warranted. Coming full circle, our experience in enforcement and litigation enables us to provide more robust and pragmatic protections for our clients in new credit extensions.
Based on this experience and knowledge, borrowers seek us to assist in specialized areas of financing, such as mortgage loan warehouse financing, receivables financing and derivative transactions. We are also called upon by intermediaries, such as marketing communications companies, to protect them against liability to third parties when their client is in financial distress.