Loan Factory is being accused of violating state privacy laws by using images of loan officers not affiliated with the company on its website.
By doing so, the mortgage brokerage created the illusion that certain brokers were part of the organization, which drove traffic to Loan Factory's page and resulted in business, the suit filed in California said.
The proposed class action, filed by Derek Daniel Bobadilla, a mortgage broker, accuses Loan Factory of including his name, photograph, likeness and personal information in its "Find a Loan Officer" page. This created an "unfair and fraudulent" impression that Bobadilla was associated with the organization, when in reality he was not, the lawsuit said.
Bobadilla argues that he did not give consent for his image to be used on Loan Factory's website. He wants any monies the defendant earned through this exploitative practice to be divided between him and potential class members, the suit states.
Loan Factory's CEO Thuan Nguyen responded Friday he was unaware of the litigation.
The plaintiff claims he discovered his profile in the summer of 2023 "despite Plaintiff and the Class Members having no relationship with Loan Factory, and that individuals attempting to search for Plaintiff or Class Members on the internet would be automatically directed to Loan Factory's website."
Additionally, the suit claims the defendant utilized search engine optimization and advertising, which directed a Google search of Bobadilla's name to Loan Factory's website.
"Loan Factory has injured Plaintiff and the Class by taking intellectual property without compensation, by unlawfully profiting from its exploitation of personal information via a scheme involving fraud and trickery—holding out the Plaintiff's and the Class' names, images, likenesses, and personal information as though such individuals were affiliated with Loan Factory," the suit said.
The mortgage broker is asking the court to certify his proposed class action and issue injunctive relief preventing Loan Factory from continuing to operate its website without appropriate safeguards.
As of March 1, the "Find a Loan Officer" page seems to only display Loan Factory- affiliated brokers.
Per its website, Loan Factory, licensed in 48 states, claims to have closed almost $12 billion worth of loans. Its founder and CEO, Nguyen, was the top originator of 2022, cranking out a little over $2.4 billion in volume, according to
