The refinancing boom has spurred a rash of class actions that could cost the home loan industry millions of dollars. The suits are over seemingly small errors in disclosure of financing costs that at the extreme could result in rescission of some of the loans.

"It has the lending community petrified," said Laurence E. Plait, a partner at Brownstein, Zeidman & Lore, Washington, which is defending several lenders in class actions.

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