Massachusetts Housing Finance Agency v. Whitney House Associates

We are to decide whether a condition placed by the Massachusetts Housing Finance Agency (MHFA) on the extension of a loan commitment, that the borrower reimburse the MHFA for arbitrage losses, was enforceable. The question was submitted on the MHFA’s motion for summary judgment, which a judge of the Superior Court resolved — *239we think mistakenly — against the MHFA. We are of opinion that the MHFA is entitled to judgment in its favor.2

These are the material facts, based on the summary judgment materials. MHFA first issued a commitment for a permanent loan (i.e., a “take out” loan to be…