Lenders cannot make loans in Massachusetts that will default without home value appreciation
Published: September 22, 2008
Massachusetts Supreme Judicial Court , No. 10258
Issue: Mortgage Lending
Amicus Brief, filed September 22, 2008
Download the full brief (PDF)
CRL's amicus brief in support of the Massachusetts Attorney General in Commonwealth v. Fremont Investment & Loan. CRL, along with a number of other consumer groups, argues in favor of affirming the trial court's injunction of foreclosures by Fremont on loans with a set of characteristics (including "teaser rates" and prepayment penalties) that were unsustainable over the long-term without continued refinancings dependant on continued increases in property values in this appeal before the Massachusetts Supreme Judicial Court. The brief explains the dangers created by each of the problematic loan features identified by the trial court. The Supreme Judicial Court in December 2008 ruled in favor of the Attorney General in an opinion found at 897 N.E.2d 548.