Attorney General Ellison secures compliance and nearly $1M in relief for Minnesotans harmed by unlawful mortgage lending

Arizona-based fintech company Unlock Partnership Solutions sold ‘home equity agreements’ that advanced money for future repayment, secured by borrowers’ homes

AG Ellison alleged the credit products targeted financially strapped homeowners and disguised high-cost mortgage loans to evade consumer protections and rate caps

Unlock denies allegations, agrees to $944,626 in monetary relief and comply with Minnesota law

August 7, 2026 (SAINT PAUL) — Minnesota Attorney General Keith Ellison today filed a settlement of his Office’s investigation into an Arizona-based finance company called Unlock Partnership Solutions, Inc. for illegally entering into mortgage loans. Unlock marketed and entered into what it called “home equity agreements” with Minnesota homeowners, in which the company advanced a lump sum to financially strapped consumers in exchange for a large percentage of the consumer’s home equity, to be redeemed within 10 years to pay back the advance. Attorney General Ellison found that these agreements are mortgage loans that violate protections in Minnesota law against predatory interest rates, as well as the law’s disclosure requirements and the requirement that mortgage lenders be licensed with the State, which Unlock was not. Attorney General Ellison further alleged that Unlock engaged in misrepresentations regarding the “home equity agreements,” including statements to consumers that the loans do not charge interest or create debt and do not require the consumer’s home to serve as collateral to the loan.

Unlock cooperated in the Attorney General’s investigation and denies these allegations but to resolve the investigation, it agrees to cease further lending through its home equity agreements unless it becomes licensed by the Minnesota Department of Commerce, follow requirements of Minnesota’s Mortgage Originator and Servicer Licensing Act, including rate caps that apply to such loans, and comply with Minnesota mortgage laws going forward. As part of the settlement, Unlock also agrees to $944,626 in monetary and debt relief that will benefit consumers. This includes $201,050 that Unlock will directly refund to consumers, an estimated $460,000 in debt relief it will provide, and an additional $283,576 in payments that the Attorney General will use for additional restitution.

“Homeownership is a primary means for Minnesotans to obtain financial stability and secure a place to live and raise a family,” said Attorney General Ellison. “That’s why my team and I work so hard to enforce laws against abusive lending practices that threaten Minnesotans’ equity and housing stability. I brought this action to stop practices that attempted to evade those protections and misled consumers. I’m glad that Unlock has agreed to resolve the matter, abide by Minnesota law, and pay nearly $1 million that will be used to compensate Minnesota consumers who were harmed by these violations.”

Unlock Partnership Solutions was founded in 2020 and along with affiliates, began its lending in Minnesota in 2021. From 2021 through 2023, Unlock entered into approximately 86 “home equity agreements” in Minnesota. Advances to homeowners ranged from $30,000 to $339,500. In exchange for the advances, Unlock would obtain a large percentage — averaging around 33% — of the consumer’s equity in the home, to be redeemed within 10 years. Unlock marketed its products to homeowners facing financial difficulty and desperation — the very consumers that Minnesota’s mortgage laws and usury caps are designed to protect.

Based on an investigation into compliance with Minnesota’s lending and consumer-fraud statutes, Attorney General Ellison alleged that Unlock’s origination fee and equity stake, secured by a mortgage that could be foreclosed, was in fact an extremely costly and illegal form of interest that well exceeded the cost of typical mortgage loans. The Attorney General alleged that Unlock charged homeowners an initial amount equal to 100% to 140% of the amount of advance or loan principal. Attorney General Ellison also alleged that Unlock falsely advertised that these products were not loans, did not charge interest, and did not create debt, even though Unlock collected up to 22% in annualized interest, in addition to a large origination fee.

Attorney General Ellison’s investigation further found that in making these “home equity agreements” that were in fact illegal mortgage products, Unlock did not verify homeowners’ ability to repay the loans without resorting to further refinancing or foreclosure, in another violation of Minnesota’s Mortgage Originator and Services Licensing Act. In the wake of the 2008 foreclosure crisis, the Minnesota Legislature amended the law to require mortgage lenders to verify homeowners’ ability to repay, in order to prevent equity-based lending and the inevitable homeownership loss it causes. The law has other requirements to ensure sound, truthful, and fair practices in mortgage lending.

“I appreciate Unlock’s cooperation in resolving this action, conforming its practices to Minnesota law going forward, and paying funds that can compensate Minnesotans for past violations,” added Attorney General Ellison. “I hope this action sends a clear message to other fintechs looking to enter Minnesota’s mortgage market: respect our state’s laws or face legal consequences.”

Submitting complaints about predatory mortgage practices

Attorney General Ellison encourages Minnesotans to submit complaints about predatory practices in the mortgage industry by using a form on the Attorney General’s website. Minnesotans can also call the Office at (651) 296-3353 (Metro area), (800) 657-3787 (Greater Minnesota), or (800) 627-3529 (Minnesota Relay).

Minnesotans should also contact the Department of Commerce if they are concerned about unlawful practices by originators and servicers, who are often subject to licensing and oversight by that agency, which may be reached as follows:

Minnesota Department of Commerce
Enforcement Division
85 East Seventh Place, Suite 280
St. Paul, MN 55101
(651) 539-1500
www.mn.gov/commerce

Help for borrowers facing difficulty

The Attorney General also encourages Minnesotans facing difficulty repaying their mortgages to search for HUD- approved counseling agencies using the information below:

United States Department of Housing and Urban Development (HUD)
Minneapolis Field Office
212 Third Avenue South, Suite 150
Minneapolis, MN 55401
(612) 370-3000
hudgov-answers.force.com/housingcounseling/

Minnesota Homeownership Center
1000 Payne Avenue, Suite 200
St. Paul, MN 55130
(651) 659-9336 or (866) 462-6466
www.hocmn.org 

Minnesota Housing
400 Wabasha Street, Suite 400
St. Paul, MN 55102
(651) 296-7608 or (800) 657-3769
www.mnhousing.gov 

Lutheran Social Services Financial Counseling
PO Box 306, Duluth, MN 55801
(218) 529-2227 or (888) 577-2227
www.lssmn.org/financialcounseling