"These agreements lead homeowners to believe they're accessing their equity safely, yet they are being locked into complicated, one-sided contracts that can wipe out a lifetime of earned savings, William Alvarado Rivera, senior vice president of litigation at AARP Foundation, said in a statement. Misleading products like Unison's can undermine the security people need as they age. NACA is represented in the case by its in-house attorneys, AARP Foundation and Singleton Schreiber."
"The complaint argues that Unison's product constitutes an unlicensed mortgage that fails to comply with federal and local consumer protection laws. Despite this, NACA says the company promotes the offering as an equity sharing agreement or home equity investment that involves no debt, carries no interest and requires no monthly payment. The group characterizes these labels as misleading because they frame the transaction as a simple partnership rather than a high-cost loan."
NACA filed a lawsuit in the Superior Court of the District of Columbia seeking to halt Unison's practices in Washington, D.C., and void existing agreements. The complaint alleges Unison's home equity investment product constitutes an unlicensed mortgage that fails to comply with federal and local consumer protection laws. NACA contends the company markets the offering as an equity sharing agreement or home equity investment with no debt, no interest and no monthly payments, labels that obscure cost and risk. AARP Foundation and civil counsel represent NACA and warn that such arrangements can erase homeowners' lifetime savings. Unison previously faced related legal scrutiny, including an October settlement considering whether HEIs should be classified as reverse mortgages.
Read at www.housingwire.com
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