Patterson Belknap Webb & Tyler is the latest law firm to form a practice group focused on subprime lending issues and litigation, following similar moves by Paul, Hastings, Janofsky & Walker and Pillsbury Winthrop Shaw Pittman earlier this year.

As more homeowners default on subprime loans, they’re setting off a cascade of legal troubles that range from bankruptcies of the institutions that provided the loans to investment losses on securities backed by the home mortgages to state and federal probes of possible misrepresentations about the loans.

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