Unison is facing another home equity investment lawsuit

"Unison uses sophisticated data infrastructure to select homes likely to increase in value, while employing opaque fees and convoluted terms to ensure its own profits at the homeowner's expense. Unison isn't a partner with homeowners—as its own contract admits in fine print. Instead, it locks them into contracts under which they must pay Unison far more money than they received up front and, in some cases, forces them to sell their homes to do so."

"Unlike traditional home equity lenders, HEI providers like Unison market their products as debt-free and interest-free, claiming they are partners who share in both the gains and losses of a home's value. The complaint alleges this partnership is illusory. Partners, as a legal term, requires obligations like acting in the other person's best interest and sharing risks and burdens, and these companies don't do that."

"The lawsuit argues that these agreements are actually residential reverse mortgages and should be subject to California's strict consumer protection laws, including interest rate caps and licensing requirements. Unison, which operates in 30 states and Washington D.C., has previously stated that its equity sharing agreements are not loans and are not currently required to be licensed as such."

Unison, a home equity investment (HEI) provider operating in 30 states, faces legal action for issuing illegal mortgage loans disguised as HomeOwner Agreements and option contracts. The company markets its products as debt-free, interest-free partnerships where it shares in home appreciation gains and losses. However, the lawsuit alleges this partnership is illusory. Unison uses sophisticated data infrastructure to select homes likely to appreciate while employing opaque fees and complex terms ensuring company profits. Homeowners are locked into contracts requiring them to pay significantly more than initially received, sometimes forcing home sales. The suit argues these agreements constitute residential reverse mortgages subject to strict consumer protection laws, including interest rate caps and licensing requirements that Unison currently evades.

Read at www.housingwire.com