December 10, 2007
Subprime Litigation Risk - What's the State of Your State?
Some interesting findings on the subprime fallout... Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist, today published What's the State of Your State? E&O Risk Uneven across the Country, a state-by-state overview of the threat of errors & omissions (E&O) litigation on U.S. real estate professionals. The report finds that while no single factor can predict where litigation will be heaviest, a range of indicators, taken together, can help predict where lawsuits are most likely. According to the Guy Carpenter Index, there is little to no correlation between the highest risk states for subprime-related E&O litigation and those states such as Arizona and Nevada with the greatest number of subprime mortgage delinquencies and/or foreclosures. Rather, the riskiest states are those that have average rankings in most categories and an extremely high result in a single category. A full copy of the report can be downloaded at www.guycarp.com