Sales staff ran credit and pushed loans - all without a mortgage license, the suit claims
A new class action accuses homebuilder LGI Homes and lender loanDepot of drawing renters in with low advertised payments, then disclosing the real cost only after buyers were committed.
The suit was filed on July 29 in the US District Court for the Middle District of Florida. Two Florida homebuyers brought it, seeking to represent thousands of others across the state. It names three defendants: LGI Homes, loanDepot, and the two companies' jointly owned lender, LGI Mortgage Solutions.
According to the filing, LGI blankets renter-heavy neighborhoods with ads promising a new home for as little as "$799/mo" and "NO Down Payment Required." When a shopper responds, the lawsuit says, LGI's sales staff run credit on the spot, discourage buyers from using their own agents and lenders, and press for a signature the same day. The advertised payment, the plaintiffs allege, leaves out taxes, insurance and homeowners' association dues - costs the suit says can raise the real monthly figure by 30% to 70%.
For a mortgage audience, the central allegations sit at that sales desk. The plaintiffs claim LGI staff collect income and financial details on a "pre-qualification worksheet," pull buyers' credit, and tell them what they qualify for. That conduct, the filing argues, would make LGI an unlicensed mortgage loan originator under the Truth in Lending Act and the SAFE Act, and it points to the loan-originator rules in Regulation Z at 12 C.F.R. § 1026.36. LGI's salespeople, the suit alleges, hold no such licenses. This origination claim is pleaded against LGI alone, not against loanDepot.
On financing, the lawsuit alleges LGI directs buyers toward loanDepot and the LGI Mortgage joint venture, formed in March 2021, and it quotes an internal goal of "a 90.0% capture rate." The plaintiffs allege that what they call the "Real Monthly Payment" reaches buyers in loan documents only after they sign a purchase agreement and pay a nonrefundable deposit.
The two named buyers are offered in the filing as examples. One says LGI mailers quoted $1,900 a month; her payment, excluding HOA dues, was $2,418 in 2024, about 27% above the advertised figure, according to the filing. It reached $2,700 by 2026, which the suit attributes partly to her falling behind on payments and partly to a rise in home-insurance costs. Another buyer, a veteran, says he was told he could buy for $300,000 and was directed to loanDepot even though he wanted to weigh a likely cheaper Veterans Affairs loan.
Much of the filing draws on an investigation by Hunterbrook Media, whose affiliated law firm is among the plaintiffs' counsel. The suit cites that work for the claim that LGI buyers faced foreclosure at roughly "four times the national average for comparable mortgage borrowers." It also quotes the company's chief executive describing LGI to staff as "really a sales and marketing company that sells houses."
The plaintiffs raise four claims: Florida's deceptive and unfair trade practices act, fraud, and negligent misrepresentation against all three defendants, plus the Truth in Lending Act origination count against LGI. They seek damages the filing places above $5 million, along with disgorgement of profits, restitution and an order to stop the conduct.
The allegations are unproven, and no court has ruled on any of the claims.
