Peoples Federal Savings & Loan Ass'n v. Edwards

Shaw, Judge:

This is a direct appeal from the order of a master in equity in an action to foreclose on a mortgage. Respondent Peoples Federal Savings and Loan Association lent appellant Michael C. Edwards $165,000. Edwards gave the association a mortgage and eventually defaulted. The association brought this action and Edwards counterclaimed, *477alleging Peoples violated state banking regulations by making the loan and committed fraud in disbursing the proceeds. The master dismissed the counterclaim, holding Edwards failed to state a cause of action under either the regulations or common law. We…