Mortgage Banking

Briggs and Morgan has served as counsel for mortgage banking clients throughout the country in class action litigation, regulatory matters and finance, and investigations. Our attorneys track the latest industry trends closely, including subprime activity and market impact, changes to loan sale arrangements, and lending and master repurchase agreements.

We work closely with some of the United States’ largest mortgage banking entities and depository institutions, as well as state and national banks, thrift institutions, bank holding companies, mortgage bankers, warehouse financiers, insurance companies, and governmental entities with mortgage loan programs.

Class Action Defense

Briggs and Morgan has successfully defended clients against hundreds of groundbreaking consumer class actions arising out of the nationwide challenges of common mortgage industry practices. Our mortgage banking team boasts significant multi-jurisdiction experience through the handling of matters as primary lead counsel in courts all over the United States. This includes several significant and favorable decisions in the U.S. Courts of Appeals for the 7th, 8th, 9th and 11th Circuits, as well as Minnesota appellate courts, including:

  • Culpepper v. Irwin Mortgage Corp.: Notorious yield spread premium case; after four appeals to the 11th Circuit, resulted in class decertification and summary judgment.

Briggs’ attorneys also help mortgage banking clients resolve issues related to payments of mortgage priority; RESPA § 8, including fee splitting, markups and outsourcing; escrow account administration practices; truth-in-lending (TILA); force placed hazard insurance; private mortgage insurance; calculation and imposition of late fees; bankruptcy attorneys' fees; fees in connection with mortgage payoffs; inflated interest rates and improper discount fees; and the Fair Debt Collection Practices Act. In addition, our attorneys have argued federal preemption defenses and its relevance to today’s changing market.

Subprime (Nonprime) Mortgage Lending and Credit Markets

Our nation has seen incredible disruption to the consumer and commercial credit markets as a result of growing problems related to subprime mortgage lending. At Briggs, our attorneys understand that virtually every type of financial institution is being affected. Our litigators have represented mortgage banking institutions (often lenders selling into secondary markets) in subprime litigation related to the foreclosure process.

Minnesota was on the cutting edge of this issue, being one of the first states to pass new predatory lending legislation. Our clients can rely on us to assist in understanding these new laws and federal regulation activity.

Finance and Regulation

In addition to representing clients in litigation, transactional attorneys contribute to providing the full range of legal services required by financial institution clients.

As the process of selling and packaging loans changes as a result of lender bankruptcies, Briggs and Morgan has assisted lenders and warehouse financiers in adjusting to industry developments. In our experience, we have represented warehouse financiers as lenders or asset purchasers in the negotiation of warehouse finance documents, including master repurchase agreements, and represented mortgage banking clients in their negotiations with financiers.

Our transactional experience also includes providing advice on compliance with consumer credit regulations; correspondent agreements; loan program design; purchase and sale of whole loans; mortgage-backed securities; state regulation, licensing and taxation; master repurchase agreements; and commercial lending.

Investigations

Our mortgage banking practice also includes helping our mortgage banking clients respond quickly and efficiently to state attorney general inquiries, in order to resolve issues and avoid costly litigation. In addition, we have also advised clients in U.S. Department of Housing and Urban Development (HUD) and state department of commerce investigations.

Briggs and Morgan supports the mortgage banking industry as a member of the Mortgage Bankers Association (MBAA) and the Minnesota Mortgage Bankers Association.