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Home Equity Sharing Agreements in Washington

Home Equity Sharing Agreements (HESAs) are a growing form of nontraditional financial service that allow homeowners to access a lump-sum payment in exchange for a share of their home’s future value. These agreements are increasingly marketed to homeowners who may not qualify for traditional home equity products, including seniors, communities of color, and others experiencing financial hardship. In response, the Washington State Department of Financial Institutions has partnered with a research team from Washington State University and University of Washington to assess the growth, use, and regulatory implications of HESAs across the state. This interdisciplinary team is conducting a comprehensive study of HESA market trends, contract terms, and homeowner experiences, with a particular focus on the product’s impact on vulnerable populations and potential consumer protection concerns.

Read the HESA Final Report
Read the EWA Report

Media Coverage

WSU Insider

Two people standing outside a suburban single family home

Sociology professor leads investigation into new financial products for homeowners

Read the Article

Housingwire

Washington State Capitol Building

Washington Legislature requests study of home equity investment products

Read the Article

Project Overview

The research team is:

  • Analyzing the structure, terms, and costs of Home Equity Sharing Agreements (HESAs) using provider data, public records, and homeowner interviews.
  • Assessing how HESAs impact vulnerable populations, including seniors and communities of color, and comparing HESAs to traditional home equity products.
  • Evaluating regulatory gaps and legal ambiguity surrounding HESAs, including their treatment under state and federal lending laws.
  • Conducting simulations to model homeowner outcomes under different home appreciation scenarios and contract terms.
  • Gathering homeowner perspectives to identify factors that shape positive and negative experiences with HESAs.
  • Producing a final report with key findings, policy implications, and recommendations to inform regulatory efforts and consumer protection strategies in Washington State.

Project Team

aDepartment of Sociology, Washington State University, Pullman, Washington
bEvans School of Public Policy & Governance, University of Washington, Seattle, Washington
cRunstad Department of Real Estate, University of Washington, Seattle, Washington

Contact

General inquiries about the project may be addressed to: mariana.amorim@wsu.edu.