HOLDINGS: [1]-A borrower could maintain a claim alleging that a mortgage lender negligently mishandled loan modification applications because a balancing of factors weighed in favor of finding a duty of care under the circumstances, including the increased foreseeability of harm arising from the lender’s requirement that the borrower default before seeking a modification, the moral blame attached to such conduct, and the public policy that loan modification applications should be handled in a timely and responsible manner; [2]-To the extent that Civ. Code, § 2923.6, subd. (g), might offer an affirmative defense to negligence, such a defense was not established on the face of the complaint and thus could not be resolved on demurrer; [3]-The demurrer was properly sustained as to a conversion claim because judicially noticeable documents showed that an alleged assignment did not occur.

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Affirmed in part, reversed in part, and remanded.