Justice Cynthia Cohen of the Massachusetts Appeals Court has upheld a preliminary injunction that had been granted by Superior Court Judge Ralph D. Gants against California-based Fremont General and Fremont Investment and Loan. According to the office of the Massachusetts attorney general, Fremont's risky loan-selling conduct significantly contributed to the foreclosure crisis in the state.
The injunction prohibits Fremont from assigning or selling Massachusetts loans owned by Fremont, or the servicing obligations on those loans, unless the buyer agrees in writing to be bound by the obligations set forth in the court's original preliminary injunction issued Feb. 25.
Additionally, under the terms of the injunction, Fremont must provide the attorney general's office with at least a 30-day notice of all foreclosures it intends to initiate for the approximately 2,200 loans that Fremont still owns and services, and allow the attorney general an opportunity to object to the foreclosure. If Fremont has issued a loan that is considered presumptively unfair, and the borrower occupies the property as his or his principal dwelling, the attorney general has 45 days to object to the foreclosure.
‘We are pleased that the Appeals Court has upheld Judge Gants' ruling, which offers some measure of relief to homeowners and communities suffering from the effects of Fremont's loans,’ states Martha Coakley, Massachusetts attorney general. ‘Lenders cannot escape responsibility for their illegal conduct and contribution to the foreclosure crisis in Massachusetts, and we will continue to hold accountable those who have engaged in allegedly unfair and deceptive practices.’
Source: MA Attorney General's Office
