Does a lender have a duty to protect the interests of a borrower?

MultiRegion, United States of America

The following excerpt is from Davis v. Wells Fargo, N.A., No. 2:16-cv-00890 JAM AC (E.D. Cal. 2016):

Although a lender is not a fiduciary of its borrowers and owes them no general duty of care, a duty may nonetheless arise where a financial institution's role exceeds the scope of its "conventional role as a mere lender of money." See Nymark v. Heart Fed. Savings & Loan Ass'n, 231 Cal. App. 3d 1089, 1095-96 (1991); see also Wagner v. Benson, 101 Cal. App. 3d 27, 35 (1980) ("Liability to a borrower for negligence arises only when the lender actively participates in the financed enterprise beyond the domain of the usual money lender."). Whether

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