Stites & Harbison's financial institutions and subprime litigation group includes lawyers across Stites & Harbison's diverse practice groups and geographic locations. Lawyers with experience in business and real estate litigation, bankruptcy, title insurance defense, capital markets issues, white collar crime, securities litigation, professional liability defense, local and national regulatory compliance, lender liability, and a variety of other practice areas are ready to serve the unique needs of our financial institution clients. We represent financial institutions of all sizes—from international mortgage lenders and servicers to small town state banks—in connection with a full spectrum of litigation and adversarial matters encountered in the modern financial environment.

Our team provides experienced advice, innovative solutions, and efficient advocacy in the face of the challenging and constantly changing state, national, and international credit markets and the subprime mortgage crisis. Unlike many other firms that are just now entering this market, Stites & Harbison's financial institutions and subprime litigation team has members at every level who have seen the ebb and flow of the credit markets in previous downturns. Our experience, coupled with our reputation for innovation and efficiency, gives us the ability to stay on top of recent developments in the market—without having to reinvent the wheel with every new engagement.

The lawyers on our team include a former General Counsel for a residential mortgage lender, a former Consumer Protection Investigator with the Federal Trade Commission in Washington, D.C., a former Bank Examiner for the federal regulatory agency of the Farm Credit System, the current Chairman of the Defense Research Institute's Professional Liability Committee, lawyers listed in the "Real Estate Lawyers" section of The Best Lawyers in America®, and in the "Real Estate" section of Chambers USA, America's Leading Lawyers for Business, the current Kentucky State Editor for the online legal journal, Houselaw, and the current Vice Chair of the ABA Title Insurance Litigation Committee. Additionally, lawyers on our team hold numerous positions in charitable organizations related to the industry. For example, one of our lawyers is the former President and current pro bono counsel for Kentucky Habitat for Humanity and serves on the Global Leadership Council of Habitat for Humanity International.

Experience, capabilities and recent successes:

• In Rogan v. Bank One, N.A. (In re Cook), 457 F.3d 561 (6th Cir. 2006), Stites & Harbison lawyers successfully protected the security interest of a bank that was the assignee of a mortgage and recorded its interest after bankruptcy had been filed.

• In Countrywide Home Loans, Inc. v. Ky. Bar Ass'n, 113 S.W.3d 105 (Ky. 2003), we successfully represented a national mortgage loan company before the Kentucky Supreme Court in challenging bar association rules preventing title companies from conducting real estate closings.

• Stites & Harbison lawyers have successfully argued that the Kentucky Consumer Protection Act does not apply to mortgage loan transactions.

• Our lawyers have successfully represented lenders in litigation involving alleged violations of the Truth in Lending Act, the Real Estate Settlement Procedures Act, the Homeowners' Equity Protection Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, and various other state regulations and statutes.

• We have successfully recovered a lender's losses by asserting claims against a title insurance carrier under an insured closing protection letter for losses arising out of the fraudulent actions committed by the title insurers agent.

• We have an ongoing commercial foreclosure practice that handles the most difficult and complicated commercial and residential foreclosure actions in Kentucky, Tennessee, and Georgia—often taking over for other firms when the foreclosure action diverges from the mainstream.

• We won summary judgment on behalf of a lender in a commercial foreclosure action in which the holder of a prior-recorded mortgage failed to properly credit $500,000 at a previous loan closing and claimed that the subrogation agreement executed by the previous holder of its mortgage was unenforceable against its mortgage—preventing losses to the lender/client of almost one million dollars.

• We represented a title insurer in a multi-state recoupment action against a national lender—saving costs and attorneys' fees by aggressively pursuing discovery both before and early into the case and pushing for mediation—before the fees and costs incurred in the case prevented a reasonable settlement.

• We have represented lenders in actions to recover losses resulting from mortgage fraud—in circuit court, federal court, bankruptcy court, and family court. We have performed extensive internal investigations, recommending changes to policies and procedures to prevent future losses.

• We represent clients in government and internal investigations, and we know how to work with the authorities to obtain the criminal prosecution of a fraudulent agent or broker.

• We currently defend accountants, lawyers, real estate agents, and home inspectors against professional liability claims and have the unique experience and capabilities to defend real estate brokers, escrow agents, and other professionals who are at risk of exposure in the current financial market.

• We have assisted title insurers and lenders in investigations of closing agents and the agent's escrow practices, and we believe in working quickly to minimize losses in fraud and defalcation cases.

• Stites & Harbison lawyers recently defeated a putative class action alleging predatory lending on a dispositive motion, pre-certification.

• We are currently defending a lender in a FLSA overtime class/collective action.

• Stites & Harbison has successfully argued that brokers and lenders do not owe a fiduciary duty to borrowers.

• In Winchester Federal Savings Bank v. Winchester Bank, 359 F.Supp.2d 561 (E.D.Ky. 2004), Stites & Harbison lawyers successfully enjoined a new bank from use in its name the name of the city where it was located.

In addition to our significant litigation experience and capabilities, we have a vast array of resources to serve the needs of our financial institution clients outside of the adversarial process. Our Capital Markets Financing, Commercial Finance, Securities, Creditors' Rights and Bankruptcy, Employment Law, Real Estate Development, Real Estate Finance, and Professional Liability (Non-Medical Professionals) groups are equipped to meet the needs of our financial institution clients, including those caught in the turmoil of the subprime mortgage lending crisis.