Regulatory Alerts2026-06-12
Added · Updated
DFPI Warns Homeowners About Home Equity “Investment” Risks
The California Department of Financial Protection and Innovation (DFPI) issued a consumer alert warning homeowners about the financial risks associated with Home Equity “Investment” (HEI) products. These shared equity agreements provide upfront cash in exchange for a future lump-sum repayment tied to the property’s appreciated value, which can become costly if housing prices rise or if return caps are set too high. The regulator advises consumers to carefully review repayment terms, compare HEIs with traditional loans or assistance programs, and submit complaints directly through the agency’s official portal.