Because I had so many sleepless nights, going, 'how am I going to afford to pay for this?'" But there's a new wave of finance, the litigation loan: Novitas Loans, formerly Novitas Futures, came into being in 2011.
The company has spent years in litigation over loans it made between 1999 and 2002, and the training videos entered the public realm as a result of the lawsuit.
And Ally's most recent quarterly report estimated that losses related to ResCap's litigation and loan repurchase obligations could reach $4 billion more than it has set aside.
JPMorgan Chase reported a 4% drop in revenue, although profits rose 33% to $6.5 billion after it released funds set aside to cover litigation and loan losses.
Wells Fargo has also moved to distance itself from litigation over soured loans that banks securitized and sold to investors.
Why strike a deal — one that would, say, shield banks from new litigation over toxic loans, flawed securitizations and the mess at MERS, the registry that has made such a jumble of land records — without knowing what happened?
In return for their compliance, lenders of qualified mortgages will in the event of a foreclosure be granted a "safe harbor" from litigation challenging a loan's legality.
In addition, ResCap turned a profit in 2010, but has since been overwhelmed by litigation and bad subprime loans.
The campaign is drawing strong opposition from chambers of commerce, insurance companies and others who worry that lawsuit loans encourage litigation by emboldening plaintiffs.
Matthew Hiltzik, a spokesman for Ms. Leibovitz, pointed a finger at the lender suing Ms. Leibovitz, Art Capital Group, a company in New York with a history of litigation over its boutique loans to artists, art dealers and collectors, who pledge their art works as collateral.
