Merritt

I. Statement of Facts2

A. The Merritts’ Initial Loan Transaction In February 2006, the Merritts entered into an agreement to purchase a townhouse in Sunnyvale for $729,000. The Merritts spoke to one lender who offered to provide 2 The Merritts are representing themselves. The statement of facts is based on the allegations in the 100-page third amended complaint. This court has augmented the record on appeal to include 279 pages of exhibits that were attached to the third amended complaint. We “ ‘accept as true both facts alleged in the text of the complaint and facts appearing in exhibits attached to it. If the facts appearing in the attached exhibit contradict those expressly pleaded, those in the exhibit are given precedence. [Citations.]’ ” (Sarale v. Pacific Gas & Electric Co. (2010) 189 Cal.App.4th 225, 245.) 2 them with a loan with monthly payments of $4,600 per month while another offered a loan with monthly payments of $4,800. The Merritts then contacted Colyer, who was employed by Countrywide. Colyer told them that he could arrange a loan with payments “maybe 40 percent lower” than what the other lenders had quoted. The Merritts provided Colyer with their financial…