*FOR IMMEDIATE RELEASE FROM
**THE* *WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS*

*Thursday, Sept. 12, 2024
**CONTACT*:    
Lyn Peters, DFI Director of Communications
PH 360-902-8731, [email protected]

Ali Higgs, Director Division of Consumer Services
PH 360-902-8703, [email protected] <[email protected]>

*THE WASHINGTON STATE DEPARTMENT OF FINANCIAL INSTITUTIONS ISSUES REPORT ON HOME EQUITY SHARING AGREEMENT INQUIRY*

*"This report completes Phase One of the study per ESSB 5950"*

OLYMPIA –The Washington State Department of Financial Institutions (DFI) is issuing the first of a multi-phase report studying home equity sharing agreements (also known as HESAs) and other non-traditional financial products. The report reveals many similarities between HESA products and traditional loan products. The report is available on DFI’s website [ [link removed] ].

Nine HESA providers responded to a request for information about their products including:


* The origination process
* Servicing
* Policies and procedures
* Contract terms
* Disclosures, and
* Explanations of the calculations used to determine the different financial elements of a HESA transaction

This Phase One study report is a result of Engrossed Substitute Senate Bill ESSB 5950, which appropriated funds to study HESAs. On May 1, 2024, DFI launched an inquiry into HESA products offered to Washington [ [link removed] ] homeowners.

DFI continues to engage with HESA providers to find more information on industry practices and to monitor the industry’s impact on Washington consumers. In addition, the DFI is working with the Evans School of Public Policy and Governance at the University of Washington on Phase Two of the study which will address how HESA products effect communities of color, seniors, and other vulnerable populations in Washington.

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*About the Division of Consumer Services* ▪ www.dfi.wa.gov/cs [ [link removed] ] ▪ 360-902-8703 ▪ 877-746-4334
The mission of the Division of Consumer Services is to protect consumers from illegal and fraudulent financial products and services. The division carries out its mission through licensing, licensee examinations, investigations, and enforcing selected state and federal statutes and rules. Consumer Services regulates the business activities of consumer loan companies, mortgage brokers, money transmitters and currency exchangers, as well as check cashers and sellers, also known as "payday lenders." The Division is entirely self-supporting, with funding provided by licensing, auditing, and policing of regulated businesses and individuals. No money is received from the state General Fund or other public revenue source.

*About DFI* ▪ www.dfi.wa.gov [ [link removed] ] ▪ 360-902-8700 ▪ 877-RINGDFI (746-4334)
The Washington State Department of Financial Institutions regulates a variety of financial service providers such as banks, credit unions, mortgage brokers, consumer loan companies, payday lenders and securities brokers and dealers. The department also works to improve financial education throughout Washington through its outreach programs and online clearinghouse www.dfi.wa.gov/financial-education [ [link removed] ]. In addition to posting information about licensees and administrative actions, DFI uses the Web and social media to provide financial education information: www.facebook.com/wadfi ■ [ [link removed] ] ■ www.instagram.com/wastatedfi/ [ [link removed] ] ■ www.linkedin.com/company/state-of-washington-department-of-financial-institutions/ [ [link removed] ]  ■ twitter.com/dficonsumers [ [link removed] ] ■ [link removed] ■ [link removed] ■ www.homeownership.wa.gov [ [link removed] ]  

*NOTE:* Please send updated contact information to [email protected] <[email protected]> 

 

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