AG settles with lender over illegal home-equity loans
Minnesota Attorney General settled with Unlock Partnership Solutions for $944,626 over unlawful home-equity loans and barred the company from lending in Minnesota without a mortgage license.[1]
The package includes $201,050 in direct refunds, about $460,000 in debt cancellation and $283,576 for additional restitution to be administered by the Attorney General.[1] Unlock entered about 86 "home equity agreement" deals with Minnesota homeowners starting in 2021, advancing $30,000 to $339,500 per agreement and typically claiming around 33% of each home's equity.[1] The Attorney General's office calculated that Unlock's fees and equity stakes effectively charged illegal, very high costs.[1] In some deals the total costs equaled 100% to 140% of the advanced amount, with annualized rates near 22% and large origination fees.[1]
Unlock marketed the transactions as "home equity agreements" that advanced cash in exchange for a share of future home value. The Attorney General said those deals functioned like loans and therefore required mortgage licensing and rate protections under state law.[1] The settlement prevents Unlock from lending in Minnesota unless it obtains a mortgage license and follows the state's mortgage laws.[1]
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📌 Key Facts
- Unlock Partnership Solutions entered about 86 “home equity agreement” deals with Minnesota homeowners starting in 2021, advancing $30,000 to $339,500 per agreement and typically claiming around 33% of each home’s equity.
- The AG’s office calculated that Unlock’s fees and equity stakes effectively charged illegal, extremely high interest — sometimes 100% to 140% of the loan amount, with annualized rates up to roughly 22% plus large origination fees.
- The settlement provides $944,626 in relief: $201,050 in direct refunds, an estimated $460,000 in debt cancellation, and $283,576 for additional restitution administered by the Attorney General, and bars Unlock from lending in Minnesota without being licensed and complying with mortgage laws.
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