Lawyers profited handsomely from devising the foreclosure-mill model, and now will profit handsomely from exposing its flaws, as Larry Ribstein notes. More: Arnold Kling (“If you say that ‘the law is the law’ and ‘rules must be enforced as written,’ that can be a consistent position and I can respect you for it. But then don’t turn around and say that we should empower mortgage counselors to rewrite people’s loans.”) Stephen Bainbridge (prospective lawsuit wave over packaging of mortgages for investors “show the extent to which mass financial torts now adversely affect American business.”)

Yet more: “Lawsuit wave could hurt housing market: FDIC chief” [AP/WaPo]; the elusive search for villains [Holman Jenkins, WSJ]

Filed under: mortgages