Lawsuit accuses mortgage brokers of targeting seniors

February 8, 2010 3:04:35 PM PST
Illinois Attorney General Lisa Madigan has filed a lawsuit against two mortgage brokers, accusing them of using deceptive marketing to solicit senior citizens for reverse mortgages.

The lawsuit targets Hartland Mortgage Centers in suburban Woodridge and American Advisors Group based in Irvine, California.

Madigan says reverse mortgages are complex loans that should only be taken out after a homeowner consults with a qualified housing counselor. The lawsuit claims the two mortgage brokers targeted homeowners aged 62 and older and used misleading language in their advertising. It also claims that they disguised some loans as government benefits that did not need to be repaid.

The lawsuit seeks a permanent injunction blocking the two companies from engaging in deceptive advertising and restitution for consumers who took out these loans.