The Attorney General filed a “nation-leading” lawsuit against Boston-based home equity investment (HEI) companies Hometap Equity Partners LLC and HomeTap Management Holdings LLC. According to a press release from the AG’s office,
The lawsuit alleges that Hometap engaged in unlawful and predatory practices that targeted financially vulnerable homeowners for profit. Specifically, the AGO alleges that Hometap unfairly put consumers at an unreasonably high risk of foreclosure and financial harm by collecting unlawfully high interest; making mortgage loans without adequate financial assessments or underwriting; offering illegal reverse mortgages that fail to comply with state consumer protection laws; and deceptively concealing the high cost and nature of the HEI product.Â
The massive 116-page complaint seeks to prevent Hometap from continuing the allegedly unlawful practices and to restore the financial losses supposedly suffered by the company’s borrowers.