This bill mandates the Department of Financial Institutions in Washington to conduct a comprehensive study on home equity sharing agreements. The study aims to assess the necessity for regulation in this area and will include various components such as data collection on the usage of these agreements, marketing practices, potential licensing structures, and the evaluation of disclosures provided to homeowners. Additionally, the study will explore the current market mechanisms, the need for caps on equity returns, and the prohibition of certain practices related to these agreements. The department is required to consult with industry members and consumers to gather insights for the study.

The findings and recommendations from this study are to be compiled into a report and submitted to the relevant legislative committees by December 1, 2024. The bill also includes a provision that this section will expire on August 1, 2025, ensuring that the study and its recommendations are time-bound and subject to legislative review.

Statutes affected:
Original Bill: 31.04.015, 31.04.102