Coe Discusses Surge of AI-Generated Lawsuits in Mortgage Servicing in National Mortgage News
Stinson LLP Partner Loren Coe was featured in National Mortgage News in an article titled "A surge of AI-generated lawsuits is causing servicers pain," which examines the growing impact of AI-generated filings on mortgage servicers.
In the article, Coe addressed how servicers are increasingly encountering lawsuits that appear to be generated or heavily influenced by AI tools, contributing to a rise in volume and complexity in mortgage banking litigation. He highlighted the time-consuming nature of responding to these filings and the operational strain they create for servicers.
"A determined pro se who's dedicated to the cause can be time consuming and difficult," Coe said in the article. "There may be no merit to legal arguments being made, but the volume that can be generated in motion practice and correspondence and disputes and everything else can be frustrating."
Coe also noted that many of the theories in these filings are recycled arguments that were largely rejected in earlier foreclosure litigation cycles, now resurfacing through AI-assisted research and drafting. He added that these filings can extend beyond litigation, increasing operational burdens for servicers through regulatory inquiries that require substantial time and resources to address even when allegations lack merit.
Coe represents financial institutions in mortgage servicing litigation, with a focus on defending individual and class action claims involving RESPA, TILA, FDCPA, HBOR, and related consumer protection statutes, as well as traditional real property disputes, fraud and other torts. He also advises clients on servicing compliance, regulatory risk and litigation strategy in the mortgage banking industry.
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