Lender Owes No Tort Duty To Borrower Processing, Completing Loan Modifications

Mealey's (April 14, 2022, 9:06 AM EDT) -- SACRAMENTO, Calif. — A mortgage lender do not owe a borrower a “tort duty sounding in negligence principles” to review and respond to a borrower’s application for a loan modification such that it may be held liable for economic losses sustained by the borrower, the California Supreme Court ruled March 7 in affirming a state trial court’s grant of demurrer in favor of the lender....

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