The collapse of the subprime mortgage market has caused rapid and severe economic changes, confronting individuals and businesses with legal challenges. Holland & Hart has responded by creating a Subprime Mortgage Industry Group, an interdisciplinary team of attorneys with substantial hands-on experience. The breadth and depth of our skills make us uniquely equipped to respond to business disputes, lawsuits, and government investigations relating to the subprime crisis. We have represented a wide range of financial services and real estate clients, including lenders, creditors committees, broker-dealers, and mortgage brokers.
Litigation
Securities Litigation
- Subprime mortgages were securitized and sold in the form of collateralized debt obligations and collateralized mortgage obligations. Individual and institutional investors who purchased these incurred unforeseen losses, creating the potential for disputes among customers, broker-dealers and investment advisers, and regulatory inquiries. We regularly represent regulated entities in arbitrations, state and federal litigation, and Securities and Exchange Commission investigations, giving us the necessary experience to obtain winning results for our securities industry clients.
- Investors have recently launched class action lawsuits against subprime lenders. We have substantial experience defending such lawsuits, as well as shareholder derivative litigation.
- Claims against lenders and investment managers include issues of director and officer liability. We regularly counsel businesses and their officers and directors on such claims and on related D&O insurance issues.
Consumer Protection
- State Attorneys General and borrowers have brought consumer protection claims against lenders and mortgage brokers, alleging that subprime loans were inherently unfair or deceptive in nature. Our lawyers, including former employees of various Attorneys General offices, have defended clients against such claims in private litigation and investigations involving, among other things, the sale of mortgage-backed notes.
Contract and Commercial Litigation
- Financial pressure created by liquidity, capacity and credit tightening is causing transaction and project failures and contract performance issues. We understand the underlying financial issues and are well-positioned to advise on relevant litigation strategies.
White Collar
- A growing number of authorities are investigating whether the subprime meltdown involved false loan applications, accounting improprieties and other forms of wrongdoing in violation of state and federal law. We are well-positioned to respond to these inquiries. We have represented companies and their corporate directors, officers and managers in a variety of government investigations involving alleged securities fraud, anti money-laundering and other financial crimes, and related complex civil litigation. Our white collar lawyers include former federal and state prosecutors, public defenders, and Securities and Exchange Commission attorneys. The diversity of our experience offers significant balance in perspective. We understand the need for precise and discrete management of these sensitive matters, and are adept at resolving investigations on favorable terms for our clients prior to litigation.
Bankruptcy
- Other subprime lenders are expected to follow New Century Financial Corp. into bankruptcy. With highly experienced practitioners in our Colorado, Idaho, Montana, Utah, and Wyoming offices, we can tackle any bankruptcy or insolvency matter our clients might face.
Business
Banking and Financial Institutions
- We regularly advise clients in loan workouts, negotiations and foreclosures, as well as state and federal regulatory compliance.
- Our understanding of the industries and businesses of the Mountain West Region greatly enhances our ability to represent financial institutions dealing with subprime issues.
Real Estate
- We take pride in our experience with complex real estate transactions. We provide legal services pertaining to a full array of commercial real estate matters, including sales and purchases, leasing, lending, foreclosures and workouts.
Tax
- By keeping abreast of the ever-changing and complex tax environment, Holland & Hart provides legal advice and services to individuals and businesses. Holland & Hart also designs solutions to mitigate taxes in complex business transactions. Services include federal, state and local taxation, real estate, property and use taxation, and partnerships and LLC's.
For further information, please contact:
Wiley E. Mayne, Partner
Denver Office
Phone: 303-295-8251
or
Holly Stein Sollod, Partner
Denver Office
Phone: 303-295-8085