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Splitero expands home equity investment service to four additional states
The fintech said it now operates in 17 states and offers a Maturity Match option that aligns the equity investment term with a homeowner’s mortgage timeline.
Splitero has expanded its home equity investment services to Idaho, Missouri, Montana and Wyoming, bringing its footprint to 17 states, HousingWire reports. The company’s model is designed to let homeowners access home equity without making monthly payments tied to additional debt.
Splitero CEO Michael Gifford said homeowners can use the access to equity for goals such as renovations, retirement or debt relief. The company pointed to $35 trillion in total U.S. home equity, noting many homeowners either hold low mortgage rates they do not want to give up or face strict income requirements when trying to secure new financing.
The company said it offers a Maturity Match option that aligns the equity investment term with a homeowner’s mortgage timeline. Splitero also said homeowners can repurchase the equity investment option through a home sale, refinance or cash settlement without penalty, according to the company.
The expansion comes as regulators and law firms increase scrutiny of home equity investment frameworks, HousingWire added. A new Senate bill, the Home Equity Lending Integrity Act, would amend the Truth in Lending Act to explicitly classify home equity investments as residential mortgages, subjecting them to federal consumer protections, disclosure requirements and Consumer Financial Protection Bureau oversight.