It is no secret that the credit crisis has caused substantial economic loss and the list of casualties includes some of the nation’s largest lenders.

“But the worst is yet to come,” said Talcott J. Franklin, a Patton Boggs partner, who recently co-authored a new book, the Mortgage & Asset Backed Securities Litigation Handbook, on the legal implications of the credit crisis. “Subprime borrowers, as the weakest link, were the first to fall. Many more American families and businesses live beyond their means on credit. The bills are coming due, and someone has to pay them.”

The lionshare of the debt was securitized so the impact of defaults on these loans will not be localized to a single industry, but will be widely felt both here and overseas, Franklin said.

Franklin and co-author Thomas F. Nealon III, general counsel at LNR Partners, Inc. see their book as a crucial source for lawyers and investors alike as they navigate the credit crisis in search of deals and potential litigation.

Published by West Legalworks and Thomson West, the book describes the history and probable future of the mortgage and asset-backed securities market. It analyzes what went wrong and provides information vital to sophisticated investors, lawyers, and policy makers related to the claims and defenses that will be asserted as a result of the credit crisis.

“I am certain that this book will be an essential tool and required reading material for any attorney handling this type of litigation,” said Nealon, who regularly retains counsel to handle mortgage backed securities litigation. “In recent months, mortgage backed securities and securitization have become common if not daily topics of discussion in not only business and legal publications but in the general press as well. This book is unique and at the present time a one of a kind resource that addresses all of the issues relevant to this discussion.”

Franklin has litigated numerous cases related to the sale and/or securitization of loans involving issues such as loan origination, interim servicing, loan payment, and loan security. For more information see:
PATTON

As general counsel for LNR Partners, Nealon works for the largest special servicer in the commercial mortgage backed securities industry. Its portfolio is about $250 billion in commercial real estate mortgage loans.

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