Plaintiffs Justin Keller, Hailey Kardux, and Patricia Bandy filed a proposed class-action lawsuit against Monroe Capital concerning its role in MV Realty's Homeowner Benefit Agreement (HBA) program. The program, financed by Monroe Capital's $40 million credit facility, enabled MV Realty to operate in 33 states. The lawsuit alleges that the HBA agreements stripped homeowners of their property control and equity access. Accusations against Monroe Capital include violations of federal and state laws. The proposed class could include over 38,000 affected homeowners, with at least two plaintiffs unable to sell their homes due to restrictive terms.
The lawsuit accuses Monroe Capital of violating the federal Racketeer Influenced and Corrupt Organizations Act (RICO) and the Sherman Antitrust Act, as well as state consumer protection laws.
Under the HBA program, a homeowner signs over the right to list their home for up to 40 years in exchange for a nominal one-time cash payment.
Collection
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