Craig Trainor, assistant secretary for Fair Housing and Equal Opportunity at HUD, warned fair housing advocates that if they aren't compliant with the law, he would bring an "investigative storm" against them.

The lawsuit alleges that Unison lured Colorado homeowners into high-cost home equity agreements by falsely marketing its product as an interest-free option contract.

The new guidelines, which go into effect Aug. 6, require seller/servicers to have clear policies in place to mitigate the risks posed by this technology and to ensure it complies with existing laws and regulations.