Walker

J. Lynwood Walker and Violet Walker (the Walkers) appeal from the trial court’s grant of summary judgment in favor of Countrywide Home Loans, Inc. (Countrywide). Countrywide appeals from the court’s denial of its motion for attorney fees.

When a borrower is in default on a loan secured by real property, Countrywide conducts inspections of the property, the cost of which Countrywide charges to the delinquent borrower. The Walkers challenge Countrywide’s practice of passing the cost of conducting property inspections to delinquent borrowers, contending that the practice is unlawful, unfair, and deceptive under Business and Professions Code section 17200 (the unfair competition law). The Walkers argue property inspection fees are “unlawful” late charges that violate provisions of California’s Civil and Financial Codes; the fees are “unfair” in that the utility of charging them to consumers is outweighed by the harm to consumers, they are unethical and they are not permitted by the Walkers’ deed of trust; and the fees are “deceptive” because the Walkers’ deed of trust does not authorize them.

In the published portion of this opinion, we hold that Countrywide’s practice of…