Mass. AG Sues Lender For Predatory Loans

Law360, New York (October 17, 2007, 12:00 AM EDT) -- A Massachusetts enforcement action accusing subprime mortgage lender Fremont Investment & Loan of predatory lending was removed to the U.S. District Court for the District of Massachusetts on Tuesday.

The action, which Massachusetts Attorney General Martha Coakley filed in state court on Oct. 4, accuses Fremont and its parent, Fremont General Corp., of unfair business practices in Massachusetts in violation of that state's Consumer Protection Act.

According to the complaint, Fremont sold thousands of risky subprime loans, which it allegedly failed to audit. The company, the...
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