SUPPORT HB 2081/ SB 5408

Protect Washington Homeowners

HESAs are deceiving agreements made to look like loans to unsuspecting homeowners who are low on cash, they lead individuals to a binding contract and after months of not charging, take a percentage of your home's appreciation instead of interest.

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Read the one-pager

Read the one pager for the bill, prepared with the help with Statewide Poverty Action Network.

Give Washington Homeowners Back Their Security.

What Are HESAs?

Home Equity Sharing Agreements, known as HESAs are unregulated contracts between homeowners and investors, aiming for those in financial distress. Often confusing, these agreements can lead desperate homeowners to unknowingly trade their home equity for a lump sum of money. Currently, there is no limit on the equity percentage an investor can take, meaning that they can take as much as 100%.

What's The Issue?

HESAs are predatory and evade regulation. There are currently no foreclosure protections and these contracts are not subject to mortgage contract laws. Furthermore, they prevent homeowners from refinancing and making home improvements while balloon payments leave homeowners owing far more than they originally received. These agreements mislead consumers into thinking they are taking out a loan, rather than selling their home equity.

Homeowners count on using their home equity to buy a new house, pay for end-of-life care, or fund retirement, but find themselves trapped in a downward spiral that often results in bankruptcy, foreclosure and eviction.

What will HB 2081/SB 5408

  • Bringing HESA contracts under the definition of a mortgage loan
    to ensure the same protections as traditional mortgages and thus,
    regulation by the Department of Financial Institutions.
  •  Caps the amount of equity an investor can take. Doing do will make the
    cost to the consumer clearer and will facilitate accurate disclosures.
  • Prohibits the investor from putting a lien on the property or otherwise
    inhibiting renting, refinancing, etc.
Regulate Home Equity Stealing Agreements

To the desperate, HESAs may seem like a source of relief, but in reality, they ensnare individuals in potentially devastating situations support HB2081/SB 5408 today and prevent families from losing their homes.

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