Lender Liability: Where Good Intentions Go Wrong

Bankers expect to be repaid on their loans, but what happens if their borrowers have been harmed (or think they have been harmed) by a bank during the origination or servicing of the asset? Lender liability is one of those topics that tends to surface during banker training sessions, legal reviews, or after something goes wrong with a loan and it’s transferred to workout. Most bankers understand lender liability conceptually, but do they appreciate how easily the ingredients for a lender li…