In the wake of the Wall Street meltdown, recent press on subprime mortgage class action litigation has focused on securities class actions and cases involving subprime investments. Less has been written about trends in class actions seeking redress for alleged predatory lending practices.
However, that doesn’t mean that there aren’t any cases involving predatory lending practices. In fact, as discussed in this editorial by Andy Meek of the Memphis Daily News, local governments in the Memphis area may be considering a resolution authorizing legal action against mortgage companies for certain lending practices that some say caused individuals poor and minority communities to accept bad loans. A similar action is reportedly already pending in Baltimore.