Commonwealth v. Fremont Investment & Loan
Supreme Judicial Court of Massachusetts
897 N.E.2d 548 (Mass. 2008)
Relevant factsFree
Fremont Investment & Loan (defendant) issued numerous subprime adjustable-rate mortgages to Massachusetts residents requiring no down payment and steep payment increases after two or three years; when many defaulted, the Massachusetts Attorney General (plaintiff) sued for unfair and deceptive practices and obtained a preliminary injunction requiring Fremont to seek alternatives to foreclosure or court approval for loans matching four specific unfair characteristics, and Fremont appealed.
IssueFree
Whether a preliminary injunction restricting a bank's ability to foreclose on loans in default is against the public interest.