Home Foreclosures: 7.4 Unfair and Deceptive Acts and Practices (UDAP) Statutes
Abusive mortgage origination practices can often be challenged under state unfair and deceptive acts and practices (UDAP) statutes.87 Under these statutes, unfairness is typically broader than deception, and the deception standard is broader than affirmative misrepresentation. For example, the failure to disclose the disadvantageous cost or nature of the loan may be a deceptive practice.