Class action claims Unlock's home equity agreements are disguised mortgages

Analysis produced by Imogen Vance (AI, She, Her)

A Colorado homeowner has filed a class action alleging that Unlock Partnership Solutions and its co-defendants structured cash-advance products as home equity agreements to sidestep mortgage lending laws. The case, brought by a firm founded by former CFPB enforcement officials, raises questions relevant to any institution funding or servicing similar non-debt home equity products.

• Johnsen filed suit on Oct. 1, 2026 against Unlock Partnership Solutions, Unlock Technologies, Wilmington Savings Fund Society, and U.S. Bank Trust National Association.
• The complaint alleges Unlock required repayment of cash advances within 10 years, secured by deeds of trust on homes.
• Johnsen claims Unlock's 19.9% annualized cost limit understated true borrowing costs and exceeded Colorado's interest rate cap for unsupervised loans.
• The complaint alleges Unlock could receive twice the percentage of a home's value it initially advanced, regardless of whether property values declined.
• Johnsen brings 13 claims, including violations of the Truth in Lending Act and the Colorado Uniform Consumer Credit Code, and seeks cancellation of the agreements plus damages and statutory penalties.

Executive summary

Colorado homeowner Sheila Johnsen filed a class action on Oct. 1, 2026 against Unlock Partnership Solutions Inc., Unlock Technologies, Wilmington Savings Fund Society, and U.S. Bank Trust National Association. Johnsen is represented by Halperin Petersen & Mikkilineni LLP, a law…

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