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LGI Homes, loanDepot face class action over alleged sales scheme
The lawsuit, filed July 29, alleges marketing that omits taxes and HOA dues can raise monthly payments by 30% to 70%, and cites tactics aimed at steering buyers into loanDepot.
HousingWire reports that Florida homebuyers have filed a proposed class action in federal court accusing LGI Homes, loanDepot, and their joint venture, LGI Mortgage Solutions LLC, of running an improper home-sales scheme tied to misleading payment advertising and pressure to close quickly. The complaint, filed July 29, alleges the companies omitted costs such as property taxes and homeowners association dues from advertised monthly payment offers. According to the lawsuit, those additional items can add 30% to 70% to a buyer’s payment depending on down payment and financing terms, with the suit also alleging violations including TILA and FDUTPA alongside fraud and misrepresentation claims. HousingWire also reports that the lawsuit says the companies target renters who are largely lower-income and minority Americans with “as low as $799” monthly payment marketing and a no down payment message. Plaintiffs allege LGI uses high-pressure tactics to speed decisions and limit outside advice, including claims that sales representatives tell customers homes are moving quickly, refuse to answer some questions, and say buyers cannot use their own real estate agents or brokers. The complaint further alleges a funneling structure in which prospective buyers are steered into loanDepot, including through LGI Mortgage Solutions, even when buyers have preexisting lender relationships or are eligible for VA loans. HousingWire says the filing cites that LGI trains sales representatives to convert about 20% of shoppers on their first visit, and includes individual account examples, including one borrower who allegedly paid a nonrefundable deposit before learning about additional fees and taxes and now pays about $2,450 per month.
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