Foreclosures By Subprime Lender Fremont Investment and Loan Stopped By Court

The Massachusetts Attorney General obtained a preliminary injunction against California based Fremont General and Fremont Investment and Loan ("Fremont"), a subprime lender that originated thousands of risky loans in Massachusetts. Risky loans significantly contributed to the foreclosure crisis and Massachusetts is holding Freemont up to scrutiny for possible illegal acts. The order prohibits Fremont from initiating or advancing foreclosures on loans that are "presumptively unfair."

The Attorney General's Office filed suit based on Freemont's unfair and deceptive loan origination and sales conduct. The complaint specifically alleges Freemont was selling loan products it knew would fail, such as "no documentation" loans. The complaint further alleges the company sold these loans through third party brokers and provided financial incentives to these brokers to sell high cost products. In addition to injunctive relief, the Attorney General's Office is seeking civil penalties and restitution.

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