HSBC Bank USA, N.A. v. Morris

The Supreme Judicial Court reversed in part the Housing Court judge's grant of summary judgment in favor of HSBC Bank USA, N.A., as trustee of the Fremont Home Loan Trust 2005-E, Mortgage Backed Certificate, Series 2005-E (HSBC), in this summary process action, holding that one of Defendants' counterclaims was not barred.

Defendants purchased their home with proceeds from two loans secured by a mortgage on the property. The primary loan was at issue on appeal. After Defendants defaulted on their monthly payments HSBC, the assignee of the home mortgage loan, held a foreclosure sale and sold Defendants' home to the highest bidder. When Defendants refused to vacate the property HSBC initiated the present summary process action. Defendants brought counterclaims under section 15(b)(2) of the Predatory Home Loan Practices Act (PHLPA), Mass. Gen. Laws ch. 183C and under Mass. Gen. Laws ch. 93A. The trial judge granted summary judgment in favor of HSBC. The appeals court affirmed. The Supreme Judicial Court reversed, holding (1) Defendants were entitled to assert a counterclaim under PHLPA to limited monetary damages; and (2) Defendants' counterclaim under chapter 93A was barred.