Protecting Homeowners from Predatory Loans

Minnesota's attorney general has secured a major settlement with an Arizona finance company accused of targeting vulnerable homeowners with unlawful mortgage loans. The company, Unlock Partnership Solutions, Inc., offered home equity agreements that were actually high-cost mortgage loans violating Minnesota's laws on interest rates, disclosures, and licensing.

The investigation found that Unlock's fees and equity stakes amounted to extremely expensive and illegal interest, sometimes costing homeowners 100% to 140% of the loan amount. The company also allegedly misrepresented the loans as not creating debt or charging interest, even though annualized interest could reach 22% plus large origination fees.

The settlement means Unlock will provide $944,626 in relief to Minnesotans, including $201,050 in direct refunds, an estimated $460,000 in debt relief, and $283,576 for additional restitution managed by the attorney general's office. Unlock agreed to stop offering these agreements unless it becomes licensed in Minnesota and follows all state mortgage laws, including rate caps and consumer protections.

Homeownership is a primary means for Minnesotans to obtain financial stability and secure a place to live and raise a family. The attorney general's office works hard to enforce laws against abusive lending practices that threaten Minnesotans' equity and housing stability. Unlock denies the allegations but has agreed to the settlement terms and to comply with Minnesota law in the future.