Industry coalition lauds adoption of home equity investment regulations in Illinois

Regulators in Illinois have approved what a group of The framework brings shared equity products under the state’s Residential Mortgage License Act of 1987 and is intended to balance consumer protections with continued access to the products. Home equity investments, or shared equity agreements, typically allow homeowners to access cash in exchange for a share of future “Maine’s law was modeled on mortgage loan statutes without adequate adjustment for the structural differences that make shared-equity products work,” Riccitelli said. “The result is a framework that cannot be operationalized — not because the goal of consumer protection is wrong, but because the wrong tool was applied to the job. So you will not see any shared-equity products offered in Maine, and Maine homeowners will unfortunately not have the opportunity to avail themselves of the benefits they offer.”

Broader context

Shared equity and home equity investment products have grown in recent years as homeowners with significant untapped equity look for non-debt options to access cash amid higher interest rates.

The products have also “We should have no filter to talk about these products,” REVERSE plus co-founder Dan Hultquist said earlier this month at the The regulatory framework has been finalized and will move into an implementation phase under IDFPR oversight. CHEP said it plans to continue working with Illinois regulators as they put the framework into practice — and with officials in other states that are considering similar rules.

Details on effective dates, licensing impacts and operational requirements for existing shared equity providers in Illinois will be critical for compliance officers, legal teams and