California Court of Appeal

In a suit brought by homeowner-plaintiffs who fell behind on their loan payments, allegedly at the behest of their lender, against the lender and several other entities to prevent a non-judicial foreclosure sale of their home and to collect monetary damages, the trial court's judgment in favor of defendants is reversed where: 1) when a lender acquires by assignment a loan being administered by a loan servicer, the lender may be liable to the borrower for misrepresentations made by the loan servicer, as the lender's agent, after that assignment; and 2) a loan servicer may owe a duty of care to a borrower through application of the factors of Biakanja v. Irving (1958) 49 Cal.2d 647, even though its involvement in the loan does not exceed its conventional role.

Appellate Information

• Published 2016/04/26

Judges

• WALSH

Court

• California Court of Appeal

Counsel