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Point presses for regulatory clarity in home equity investment rules
Point says unclear HEI licensing, underwriting, and disclosure requirements are fueling lawsuits as a Senate bill considers classifying HEIs as residential mortgages.
Point deputy general counsel Matt Windsor said unclear home equity investment, or HEI, licensing and disclosure rules are driving lawsuits in a fast growing market. In an interview with HousingWire’s Reverse Mortgage Daily, Windsor said both consumers and HEI originators are unsure which licensure, underwriting, and disclosure requirements apply, and that uncertainty is pushing disputes into the court system.
HousingWire reports that Point is engaging lawmakers and regulators rather than waiting for judicial outcomes. The company is providing feedback on a Senate bill that would classify HEIs as residential mortgages, which it said could bring more structure to how the products are regulated.
While Point waits for federal guidance to solidify, Windsor said the firm has built an internal compliance program to prepare for whatever comes next. According to HousingWire, the company says its sales professionals are licensed mortgage loan originators, many homeowners receive HEI counseling with independent HUD certified housing counselors, and its disclosures are designed to follow regulatory requirements.