Professional Conflicts Of Interest An Obstacle For Some Attorneys In Pro Bono Foreclosure Fight

American Banker reports:

• As the mortgage crisis deepens, lawyers around the country are volunteering to help distressed homeowners avoid foreclosure, but those with the most relevant experience often face the potential for conflicts of interest involving lender clients. [... G]etting involved has [...] created a delicate situation for some of the largest law firms, which have the most staff to contribute to such projects — but often represent major lenders.

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• The conflict-of-interest question was particularly urgent for the Lawyers' Foreclosure Intervention Network, a New York pilot program that had to negotiate a structure that would satisfy the state's laws and the city's high concentration of major financial institutions — and the major law firms that represent them. [Read the New York City Bar's Ethical Opinion on Firms Handling Foreclosure Matters Pro Bono].

For more, see Homeowner Legal Aid Programs Address Conflicts.