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New Lawsuit Alleges Deceptive Home Equity “Investments” Strip Homeowners of Hard-Earned Equity
WASHINGTON— The National Association of Consumer Advocates (NACA), represented by attorneys from its staff, AARP Foundation, and Singleton Schreiber, has filed a lawsuit against Unison and its affiliates, alleging the company deceptively markets its product as a “no-debt” home equity alternative. The company actually offers unlicensed mortgage loans that can leave homeowners owing hundreds of thousands of dollars and forced to sell their homes. The suit was filed in the Superior Court of the District of Columbia today on behalf of the public interest to protect District residents from unfair and deceptive practices.
According to the complaint, Unison promotes its product as an “equity sharing agreement” or “home equity investment,” repeatedly telling homeowners it is not a loan, involves no debt, carries no interest, and requires no monthly payments. The lawsuit alleges these claims are misleading and designed to make homeowners believe they are entering into a simple partnership rather than a high-cost mortgage transaction.
The complaint alleges that, in reality, the product operates like a mortgage loan. Homeowners receive an upfront cash advance, Unison records a lien on the home, and the homeowner must later repay a much larger lump sum, often leaving selling the home as the only way to pay Unison back, or face foreclosure. As alleged in the complaint, Unison’s affiliates package the liens it obtains into investment funds, allowing its clients—high-net-worth individuals and institutional investors—to profit handsomely off the backs of homeowners
“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,” said William Alvarado Rivera, Senior Vice President of Litigation at AARP Foundation. “Misleading products like Unison’s can undermine the security people need as they age.”
The lawsuit further alleges that Unison is operating as an unlicensed mortgage lender in the District of Columbia and failing to comply with federal and local consumer protection laws that regulate mortgage products. By labeling its product as an “equity sharing agreement” or “investment,” and falsely claiming it involves no debt or interest, Unison evades the licensing, disclosure, and consumer protections required for mortgage loans, leaving homeowners without clear information about the true cost and risks of the transaction.
“We’ve seen the devastation that follows when complex mortgage products are pushed into the market without meaningful oversight, and the 2008 financial crisis made clear just how devastating that can be for families and communities,” said Elizabeth Aniskevich, Senior Counsel at Singleton Schreiber, and lead attorney for the lawsuit. “The market for these products is growing rapidly, and it is critical that the companies behind them are held to the same lending laws and consumer protection standards designed to prevent exactly this kind of harm.”
Unison operates nationwide, with agreements covering thousands of homes and billions of dollars in residential real estate value, including properties in the District of Columbia.
NACA brings the case under the District of Columbia Consumer Protection Procedures Act, seeking to halt Unison’s practices in the District, void existing agreements, and prevent further harm to homeowners.
"Unison has simply put a new ‘tech-friendly’ name on a decades old unfair and deceptive scheme to steal wealth from long-time D.C. homeowners,” said Ira Rheingold, Executive Director of NACA. “Like those abusive actors before it, Unison's unlawful behavior must be stopped, and it must be held accountable for the harm it has caused."
This is not the only case raising allegations that Unison is using deceptive and illegal marketing tactics to take advantage of vulnerable homeowners. Separately, an individual lawsuit was also recently filed in the Superior Court of the District of Columbia by Lilly Evans, a 77-year-old District resident who was duped into one of Unison’s mortgage products, against Unison and related entities. That case, brought by Legal Counsel for the Elderly and AARP Foundation, raises similar allegations that Unison misrepresented the nature and risks of its so-called “equity sharing” product, resulting in significant loss of home equity.
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About AARP Foundation
AARP Foundation is the nation’s leading organization serving the 39 million older adults living in poverty or one life event away from slipping into it. Our mission is to strengthen financial resilience for and with older adults by empowering individuals and improving systems. We do this by creating pathways to quality employment, removing barriers to benefits, and promoting equitable access to essential goods and services. To learn more, visit aarpfoundation.org or follow @AARPFoundation on social media.
About Singleton Schreiber
Singleton Schreiber is a client-centered law firm, focusing on mass torts/multi-district litigation, fire litigation, personal injury/wrongful death, civil rights, environmental law, insurance bad faith, consumer protection law, tribal law, and sex abuse/trafficking. Home to the nation’s largest fire litigation practice, the firm has represented over 30,000 wildfire and explosion victims caused by utilities, government negligence, railroads, and corporate misconduct. The firm is also pursuing groundbreaking litigation against Tesla for misrepresenting their autopilot system, which recently resulted in a historic verdict. With deep experience in complex claims, the firm is committed to helping individuals, families, and communities recover and rebuild.
About Legal Counsel for the Elderly
Since 1975, Legal Counsel for the Elderly (LCE) has championed the dignity and rights of Washington, D.C. older adults by providing free legal and social work services to those in need. Our work addresses the most important aspects of an older adult’s life, including housing, economic security, self-determination, and health and safety. We impact the lives of nearly 10,000 people annually, while advocating for city-wide reforms in laws, regulations, and long-term care facilities. LCE is an affiliate of AARP.
About National of Consumer Advocates
The National Association of Consumer Advocates is a nonprofit association of consumer attorneys and advocates whose primary focus is the protection and representation of consumers.
Media Contact: Madison Daniels, mdaniels@aarp.org, 202-531-9026