Longbridge, Mutual Of Omaha To Settle Reverse Mortgage Advertising Lawsuit

Two leading reverse mortgage lenders have reached a settlement in a lawsuit alleging improper advertising practices, according to a court docket reviewed by HousingWire’s Reverse Mortgage Daily (RMD).

The dispute between Longbridge Financial and Mutual of Omaha Mortgage was filed in the U.S. District Court for the Southern District of California in late 2024. Longbridge alleged that a network of advertising websites was deceptive and failed to clearly disclose Mutual of Omaha’s control over at least one of the sites.

Representatives for the companies did not immediately respond to RMD’s requests for comment.

A joint notice of settlement filed Thursday states that the agreement resolves “all claims and causes of action.” The parties executed a confidential binding term sheet on Jan. 28 that reflects the material terms of the deal.

“The Parties are currently in the process of finalizing a long-form settlement agreement, and anticipate that the long-form agreement will be fully executed by February 18, 2026. The Parties will file a Stipulation re Dismissal shortly after the long-form settlement agreement is executed,”  the filing states. The document is signed by attorneys representing both sides.

Earlier in the case proceedings, U.S. District Court Judge Dana M. Sabraw ruled in May 2025 that some of Longbridge’s claims tied to its request for a preliminary injunction warranted limited relief, finding that “the law and facts clearly favor some of Longbridge’s claims.”

In June, the parties confirmed in a court filing that settlement discussions had occurred during a neutral evaluation conference with Magistrate Judge Valerie E. Torres. Such conferences are intended to encourage direct communication between litigants, provide a neutral assessment of the case’s merits, clarify core disputes, assist with discovery and facilitate potential settlement. 

That effort ultimately failed. It marked the second unsuccessful attempt to resolve the dispute, following an earlier round of negotiations that reportedly took place a few months after Longbridge’s initial filing — but before Mutual of Omaha submitted its first substantive response to the allegations.