Dispute and Ruling
Longbridge and Mutual of Omaha have been engaged in a legal battle, with both parties filing claims and responses with the court over the past few months. This week, Judge Sabraw made a ruling on Longbridge’s request for a preliminary injunction regarding deceptive practices on websites that allegedly favor Mutual of Omaha in the reverse mortgage business.
The judge rejected some of Longbridge’s arguments but ultimately decided to restrict statements implying that Longbridge is not licensed to offer reverse mortgages in certain states. Additionally, Mutual of Omaha is prohibited from advertising on Google search links without listing three independent lenders.
One of the key points in the case was Mutual of Omaha’s promotion of Retirement Funding Solutions (RFS) as a separate entity in rankings of top reverse mortgage lenders. Although RFS now operates under the Mutual of Omaha name, the judge found that previous advertising practices were misleading to consumers.
The judge also addressed disclosures and relationships between the parties. Advisory Institute, founded by a former general counsel of Mutual of Omaha, had failed to disclose its advertising relationship with Mutual of Omaha. Updates to the website clarified this relationship, but Longbridge argued that the initial disclosures were misleading.
Disclosures and Relationships
Advisory Institute, while not owned by Mutual of Omaha, was found to have a close advertising relationship with the lender. Longbridge raised concerns about misleading disclosures on the website, particularly in relation to Mutual of Omaha’s financial influence on the site’s content.
The judge’s order restricts Mutual of Omaha from advertising RFS as an independent provider and requires Review Counsel to prominently display its ownership by Mutual of Omaha Mortgage on its homepage. Advisory Institute is also mandated to maintain clear and visible disclosures regarding its relationship with Mutual of Omaha.
Company Responses
Representatives of Mutual of Omaha did not respond to requests for comment from HousingWire’s Reverse Mortgage Daily. However, Longbridge’s spokesperson, Trevor Chapman, expressed satisfaction with the court’s ruling and emphasized the importance of fair competition and consumer protection in the reverse mortgage market.