May 1, 2024

The Washington State Department of Financial Institutions (DFI) is gathering information about home equity sharing agreements (also known as “HESAs”) or similar home equity financial products being offered to Washington homeowners.

Companies providing HESAs or similar home equity products generally provide a homeowner with an up-front payment in exchange for a percentage interest in the equity or appreciation of the home at a future date. The agreements are typically between 10 and 30 years but may terminate early due to a sale of the property or other triggering event. Upon termination, the homeowner must pay the provider a share of the equity or appreciation, which may be an amount higher than the permitted interest rate cap in Washington under the Consumer Loan Act, chapter 31.04 RCW.

DFI is issuing requests for information to approximately 10 companies, or more if other companies are identified, that provide or offer to provide HESAs or similar home equity financial products to Washington homeowners. The information requested from each company will help DFI better understand the products and services being offered to Washington homeowners, including the terms offered by these financial products.

This inquiry is a part of the larger study set forth in ESSB 5950. If you have questions about this inquiry, please email