Thank you for sharing!

Your article was successfully shared with the contacts you provided.
BOSTON —� Massachusetts Attorney General Martha Coakley obtained a preliminary injunction barring mortgage company Fremont Investment & Loan from starting or proceeding on foreclosures or loans that are “presumptively unfair.” In Feb. 25 injunction, Associate Justice Ralph D. Gants wrote that a loan is “presumptively unfair” if it meets four conditions: • an adjustable rate mortgage with an introductory period of three years or less; • an introductory interest rate at least 3% lower than the fully-indexed rate, or relevant index at the time the loan began plus the margin in the mortgage note; • the borrower’s debt-to-income ratio exceeded 50% when calculating debt using the fully-indexed rate; and • Fremont gave 100% financing, a significant prepayment penalty or a penalty extending beyond the introductory period. Commonwealth of Massachusetts v. Fremont Investment & Loan, No. SUCV2007-04373 (Suffolk Co., Mass., Super Ct.) Gants also outlined stringent and detailed criteria that Fremont Investment, a subsidiary of Santa Monica, Calif.-based Fremont General Corp., must adhere to make or continue loans and foreclosures, including giving 30 days notice of foreclosures to the attorney general’ office. Coakley’s press release referred to Fremont Investment as a subprime lender “whose risky loan-selling conduct significantly contributed to the foreclosure crisis in Massachusetts.” “This decision shows again that in many cases, irresponsible and unlawful lending practices caused this foreclosure crisis,” said Coakley. “We intend to hold accountable those who allegedly engage in unlawful lending conduct.” Fremont and the company’s attorney on the case, James R. Carroll, a Boston litigator for New York’s at New York’s Skadden, Arps, Slate, Meagher & Flom could not immediately be reached for comment.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.