United Companies Lending Corp. v. Sargeant

United (plaintiff) charged Sargeant (defendant) 10 points in loan-origination fees on a subprime mortgage, double the roughly 5-point industry standard other lenders charged to cover subprime risk, without United's broker fully disclosing the fees and points Sargeant would owe; after Sargeant fell behind on payments and United sought foreclosure, Sargeant countered that the excessive points violated Massachusetts's unfair and deceptive lending practices statute, defined to include terms significantly deviating from industry-wide standards or otherwise unconscionable.