Bill > HB1464

This bill establishes a comprehensive regulatory framework for home equity sharing agreements in Washington state, creating a new licensing and oversight system for a financial product that allows homeowners to receive funds in exchange for a future share of their property's equity. Beginning July 1, 2026, companies offering these agreements must obtain a license from the Department of Financial Institutions and comply with strict disclosure and consumer protection requirements. The bill defines a home equity sharing agreement as a nonrecourse financial arrangement where an investor provides upfront money to a homeowner in exchange for a future portion of the property's value. Key provisions include mandating detailed disclosures to homeowners about potential costs and outcomes, limiting the annualized cost of agreements to 25 percent, requiring homeowners to maintain at least 10 percent equity, and providing a three-day rescission period. The bill also prohibits predatory practices such as charging prepayment penalties, preventing homeowners from using their property as they choose, and using affiliated appraisers without consent. Violations can result in significant penalties, including fines, license suspension, and potential criminal charges, and the bill explicitly applies consumer protection laws to these agreements to safeguard homeowners' interests.

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https://app.leg.wa.gov/billsummary?BillNumber=1464&Year=2025&Initiative=false