WSR 25-07-017
PREPROPOSAL STATEMENT OF INQUIRY
DEPARTMENT OF
FINANCIAL INSTITUTIONS
(Division of Consumer Services)
[Filed March 10, 2025, 8:49 a.m.]
Subject of Possible Rule Making: Amending chapter 208-620 WAC under the Consumer Loan Act, chapter
31.04 RCW, to clarify regulatory requirements for home equity sharing agreement (HESA) products. The division of consumer services (division) is soliciting comments on the proposed rules.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: HESA products and similar shared equity products provide consumers with an up-front payment in exchange for a share of the future equity or value appreciation of the consumer's home. HESA products meet the definition of "residential mortgage loan" as set forth in the Consumer Loan Act, chapter
31.04 RCW. The division is considering amendments to provide clarity on the regulation of HESA products.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Pursuant to Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act, 12 U.S.C. 5481, et seq., the Consumer Financial Protection Bureau has the statutory authority to implement a number of federal laws and regulations that industry must comply with.
Process for Developing New Rule: The division is soliciting comments from interested persons and will adopt rules after consideration of public comments.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Rochelle Henderson, P.O. Box 41200, Olympia, WA 98504-1200, phone 360-701-0581, email Rochelle.henderson@dfi.wa.gov, website www.dfi.wa.gov.
March 10, 2025
Ali Higgs, Director
Division of Consumer Services