Borrowers sue LGI Homes and loanDepot, alleging deceptive sales scheme

Florida homebuyers have filed a class-action lawsuit accusing LGI Homes, loanDepot and their joint venture, LGI Mortgage Solutions LLC, of running an “improper home-sales scheme.” The complaint, filed in federal court on July 29, alleges the companies rely on misleading monthly payment advertisements and high-pressure tactics to steer renters into mortgages they cannot afford. The lawsuit follows investigative reporting by Hunterbrook Media, along with public filings and statements by LGI, according to the complaint. LGI did not immediately respond to HousingWire‘s request for comment. loanDepot said it had no comment. According to the lawsuit, LGI, a national homebuilder operating since 2003, markets itself as enabling renters to become homeowners with payments “as low as $799” per month and no down payment. But plaintiffs say these offers omit key costs, such as property taxes and homeowners association (HOA) dues, that can add 30% to 70% to the payment, depending on down payment and financing terms. The plaintiffs claim that LGI and loanDepot, a national mortgage lender, target renters “who are largely lower-income and minority Americans” by promising they can buy with the same ...