Attorney General sues Boston home equity loan firm over deceptive practices

Attorney General Andrea Campbell has filed a lawsuit against Hometap, a Boston home equity loan company, alleging deceptive practices that target financially vulnerable homeowners. The lawsuit claims Hometap charged high interest rates and concealed costs, risking foreclosure for customers. Hometap, founded in 2018, offers loans based on home equity without monthly payments. The lawsuit argues that the company often pays out less than half of a home's value and does not assess customers' financial situations, marketing to those with low income or credit issues. Hometap's product is described as a "reverse mortgage" in the lawsuit, which has specific legal requirements. The company denies the allegations, stating it believes in the integrity of its products and has sought dialogue with the Attorney General's Office.