Dallaire v. Bank of America, N.A.

NEWBY, Justice.

In this case we consider whether a loan officer’s statements about lien priority in a home mortgage transaction support a borrower’s claims for breach of fiduciary duty and negligent misrepresentation against the lender. Generally, the home loan process is regarded as an arm’s length transaction between parties of equal bargaining power and, absent exceptional circumstances, will not give rise to a fiduciary duty. Because a loan officer’s initial discussion of lien priority in the context of an ordinary home mortgage transaction is not an exceptional circumstance, it does not…