RTTNews) - Friday, Fremont General Corp. (FMT | charts | news | PowerRating), a financial services holding company, announced filing of a lawsuit by Massachusetts Attorney General's Office in Massachusetts Superior Court for Suffolk County on behalf of borrowers in Massachusetts. The complaint alleged that Fremont engaged in unfair or misleading practices pertaining to origination and servicing of residential mortgage loans and wanted injunctive and fair relief for Massachusetts' borrowers and civil penalties. The company considered the lawsuit is unmerited and would defend it strongly.
The Santa Monica, California-based company said its intention was to help offending borrowers hold on to home ownership through loan modification and other proactive measures by continuing to work with regulators. Fremont said it was regrettable that the Massachusetts Attorney General had abandoned these cooperative efforts to help borrowers keep their homes.
FMT closed Friday's regular trading session at $3.95, down $0.05 or 1.25%, on a volume of 1.15 million shares on the NYSE.