Mortgage Expert Witness: California
Lender · Los Angeles, CA · Member since 2012 · 147 posts · 76 votes
Mortgage Expert Witness consultation, research and testimony is often used in mortgage litigation cases. I do this work sometimes, but wanted to ask what common types of mortgage litigation others are seeing, especially cases that used a mortgage lending expert witness.
California is the state I work in, but I'd be interested in what you have observed in other states, as well.
Joffrey Long
I imagine your niche has been with institutional loans and preditory lending, just a guess as that's a popular issue.
I have usually been involved in valuation disputes of privately held notes, pretty much audit issues and market values of the mortgage. Giving an opinion of value.
One case involved contested foreclosure proceedings with installment contracts as to the intent being preditory, what was usual and customary, nothing exciting, simply explaining industry standards vs the loan constraints posed by a creative scum ball requiring a series of balloon payments that would roll over at usurus rates, he lost.
I've assisted borrowers several times presenting mortgage issues with thier attorney and assisted setting up claims but didn't need to appear, but did some coaching of sorts pointing out issues.
Along the same or similar lines were as a creditor's representative in bankruptcy court, representing note holders in collecting amounts due and seeking foreclosure remedies, I had little argument in opposition hitting on appraisal issues. The court had an appointed appraiser they always used, mostly out of political connections, he wasn't that good.
I did get some double takes while explaining my experience for qualifications mentioning having been a bank examiner for FDIC and was accepted pretty quickly by the court.
In my area, this type of issue doesn't come up too often. It's not a consumer minded community unless it comes to private transactions.
Not sure there would be much money in it, at least around here, I'd also be concerned with just being a professional witness as it seems your motivations and opinions will eventually be more in question if you keep sitting on one side of the fence.
Bill,
Thanks for your reply. It sounds like you've got a great background and resume as a mortgage expert witness.
California (where I'm located) has a lot of cases requiring a "usury expert witness," or someone testifying on usury in mortgage lending. There are also a number of hard money lender cases, resulting in the expert really testifying as a "hard money expert witness" or "private money expert witness."
I agree with many of your comments, and relate to what you said about the dangers of being a "professional mortgage expert witness." California has a number of people who are qualified as a mortgage lending expert witness, and most of them also actually make or arrange mortgage loans. For the triers of fact, I can see why they would be more convinced by testimony from someone who is actually making mud pies every day, as opposed to someone who is just a expert on mud pies, but hasn't mixed up a batch of mud for the last 24 years.
( I have no clue where the "mud" analogy came from, so don't ask me. )
As a mortgage broker, expert witness work sometimes relates to the California Department of Real Estate. Expert witness assignments sometimes involve the regulations of the commissioner, real estate / mortgage broker standard of care, mortgage broker fiduciary duty, and California Mortgage Disclosures.
Thanks again for sharing your thoughts, Bill - exactly what I'm looking for - other thoughts from others who serve as a mortgage expert witness, and thoughts from those who are aware of mortgage litigation cases involving a mortgage lending expert witness, as well.
Joffrey Long