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Unison faces another class-action lawsuit over home equity agreements
A North Carolina federal complaint alleges the company’s contracts are unlicensed, high-cost mortgage loans and cites a prior Ninth Circuit ruling that treated Unison’s product as a reverse mortgage.
A federal lawsuit filed in North Carolina accuses home equity investment provider Unison of using agreements that plaintiffs describe as predatory, unlicensed mortgages disguised as option contracts, according to HousingWire.
The complaint alleges homeowners owe far more than they received. One couple, the Moriates, received a net advance of about $61,000 but could owe nearly $270,000 to exit the agreement, HousingWire reports.
Plaintiffs argue Unison violated North Carolina’s high-cost home loan statute by, among other things, steering around limits related to balloon payments, negative amortization, and the requirement to assess a borrower’s ability to repay. The suit also alleges Unison was not licensed to make mortgages in the state and failed to provide required lending disclosures.
The complaint cites a 2025 Ninth Circuit ruling, Olson v. Unison Agreement Corp., which found Unison’s product functioned as a reverse mortgage despite the company’s “option contract” labeling. HousingWire also notes plaintiffs allege Unison deducts fees from the upfront payment, records a deed of trust on the home, and takes a large share of the home’s future value, often 50% or more, when the agreement ends.