TPG Announces Record Results for Client Loss Mitigation Efforts

Business Wire, Feb 1, 2005

SAN RAFAEL, Calif. -- The Prieston Group (TPG) announced today that monthly cash and negotiated settlements proceeds paid by mortgage fraudsters exceeded $400,000 for the benefit of TPG clients during the month of January, 2005. The law firm of Lanahan & Reilley, LLP, which provides legal services in support of TPG Loss Mitigation efforts, indicated that $315,800 of that amount was in cash, while the balance was in various forms of negotiated settlement.

"This is significant," said Arthur Prieston, Chairman of TPG and Senior Partner and Chairman of the Mortgage Banking Group of Lanahan & Reilley, "not because of the actual dollar amount, but more importantly because it validates the effectiveness of our recovery procedures, which are now highly refined and obviously very effective."

Ryan Thomas, Esq., an L&R Mortgage Banking Group associate, added, "I don't think anyone else in the industry can do this. We've learned to quickly identify the most viable avenues of recovery, the most efficient way to pursue them, and the most productive way to 'convince' them to pay up."

Thomas attributes the firm's success to the unique Lanahan & Reilley "brand," best summed up, he said, as "mitigate first, litigate second."

"A lot of clients just throw good money after bad," he pointed out. "They get hurt by a fraudulent loan, then turn it over to the wrong attorneys to pursue the wrong people with the wrong legal strategy."

Added Prieston, "After years of representing national lenders and concentrating specifically on mortgage fraud resolution, fraudsters and other participants in the transaction are aware of L&R, whom we represent, and the breadth of our experience. They know that this is not your typical general practice law firm."

The Mortgage Banking Group of Lanahan & Reilley has developed into one of the largest, most experienced mortgage fraud practices in the country, serving hundreds of lenders all over the country and handling thousands of cases every year. This provides a significant advantage to clients, noted Prieston. "The depth of the Group's practice creates a powerful 'commonality of facts and parties' that leverages the knowledge from multiple or related cases to provide unique insights into others."

As proof of that, Thomas pointed to a recent case that came to L&R. "This was a lender in Texas who had a problem loan in North Carolina. His attorneys promptly sued. When the lender finally called us, he said he had already racked up fees of $35,000 and they hadn't even gotten to depositions yet."

What happens, he said, is that lenders go down a road of no return. They spend money unwisely, maybe realize their mistake, but to recover anything, they have to spend even more. "That's good money after bad," said Thomas.

"The real leverage we get," added Michael Brooks, another attorney in the Mortgage Banking Group who handles major fraud cases, "is through the strong language in the closing instructions and other agreements we counsel our clients to employ as members of the TPG group of clientele. With the right provisions up front, liability for misrepresentation can be spread across more parties, opening new avenues of recovery, and improving opportunities for resolution dramatically."

"In these January recoveries, for example," said Thomas, "one case was against a broker based on strong language in the broker agreement, another against a title company through the closing protection letter, and another against an appraiser under an Errors & Omissions policy."

Noted Thomas, "Fraudsters are doing so many loans to so many lenders in so many parts of the country, it's easy to miss the interrelationships and linkages. What we do for one client, however, provides an additional reference and resource for others."

"We know the pressure points," added Thomas. "We know the language, we know the vulnerabilities, we know who to pursue, and we know how to pursue them. That's the value to our clients."

About The Prieston Group

The Prieston Group is a diversified risk management consulting company. It offers the only fully integrated suite of mortgage fraud protection, mitigation, and indemnification services in the industry. Called TPG Mortgage Assurance Solutions(TM), these services provide lender due diligence and data integrity, fraud loss insurance and repurchase protection, and legal consultation for loss mitigation and recovery. Founded in 1986, the company's proprietary Lender Representation & Warranty Insurance(TM) (Pat. Pend.) protects over 700 lenders and over $50 billion in residential loans to date. TPG has been an industry leader in fighting mortgage fraud, supporting lenders, aggregators, investors, and issuers, as well as working closely with rating agencies, industry representatives, and government and legislative agencies. For more information about The Prieston Group, please visit www.priestongroup.com.

The TPG logo, Lender Representation & Warranty Insurance, and LoanCert are trademarks or service marks of The Prieston Group, Inc.