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Fremont to Halt Mass. Foreclosures

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Fremont General Corp. will halt foreclosures in Massachusetts for 90 days while the state conducts an investigation of its lending practices, state Attorney General Martha Coakley said Wednesday.


The Santa Monica-based lender agreed to suspend foreclosures on more than 2,000 loans it made in the state, Coakley said in a statement. The time will be used by the attorney general’s office to determine if any of the company’s loans were issued using “tainted unfair or deceptive lending practices,” Coakley said in the statement.


Fremont closed its home-lending operations after the Federal Deposit Insurance Corp. in March said the lender provided mortgages to people who couldn’t repay and ordered the practice stopped. Since then, Fremont has sold nearly all of its subprime residential lending operations.


Shares in Fremont were down 6 cents to $10.73 in afternoon trading on the New York Stock Exchange.

Los Angeles Business Journal Author