Olympia – Today the Washington State Department of Financial Institutions (DFI) announced the second installment of a multi-phase report studying Home Equity Sharing Agreements (HESAs). A HESA is a relatively new home equity financial product that allows homeowners to access their home equity. HESAs provide homeowners with an upfront payment in exchange for some percentage of the future value or appreciation of their home.
Senate Bill 5950 provided funds to DFI to commission a study about HESAs and other non-traditional financial products. DFI commissioned the Evans School of Public Policy and Governance at the University of Washington (Evans School) to conduct a study of how HESA products impact communities of color, seniors, and other vulnerable populations in Washington.
The Evans School worked with DFI, industry members, and Washington consumers who have used HESA products. The report also is available on DFI’s reports to the legislature website.