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Splitero expands home equity investment offering to four new states

Created at 10 Aug · 9:05 PM1 source↑ Market-relevant
IN SHORT

Splitero has expanded its home equity investment services to Idaho, Missouri, Montana, and Wyoming, bringing its total operational states to 17. The company allows homeowners to access equity without monthly payments, addressing the $35 trillion in home equity held by homeowners who may be locked into low mortgage rates.

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Key Numbers

$35 trilliontotal home equity held by homeowners
17states Splitero now operates in

Who's Involved

Splitero
financial technology company expanding home equity investment services
Michael Gifford
CEO and co-founder of Splitero
Splitero expands home equity investment offering to four new states

↳ Why This Matters

Splitero's expansion provides more homeowners with an alternative to traditional financing for accessing home equity, particularly for those hesitant to refinance low-rate mortgages, while also highlighting the growing regulatory attention on such investment frameworks.

Key facts

  • Splitero has expanded its home equity investment services to Idaho, Missouri, Montana, and Wyoming.
  • The company now operates in 17 states.
  • Splitero allows homeowners to access equity without monthly payments.
  • Homeowners can repurchase their equity investment through sale, refinance, or cash settlement without penalty.
  • The expansion coincides with increased regulatory scrutiny of home equity investment frameworks.

Splitero, a financial technology company, has expanded its home equity investment services to four new states: Idaho, Missouri, Montana, and Wyoming. This expansion brings the total number of states where Splitero operates to 17. The company's service allows homeowners to access the equity in their homes without the requirement of monthly payments.

CEO and co-founder Michael Gifford stated that the expansion enables more homeowners to utilize their home equity for various needs, such as renovations, retirement planning, starting businesses, covering medical bills, or funding college expenses, while avoiding the stress of accumulating debt payments. He highlighted that many homeowners are equity-rich but are hesitant to refinance due to low-interest-rate mortgages.

Nationally, homeowners collectively hold approximately $35 trillion in home equity. Splitero's offering includes a 'Maturity Match' option, designed to align the term of the home equity investment with the homeowner's existing mortgage timeline. Homeowners have the flexibility to buy back their equity investment through a home sale, refinancing, or a cash settlement without incurring penalties.

The company's expansion occurs at a time when regulatory bodies and legal firms are increasing their scrutiny of home equity investment (HEI) frameworks. A proposed Senate bill, the Home Equity Lending Integrity Act, aims to amend the Truth in Lending Act to classify HEI as residential mortgages, thereby subjecting them to federal consumer protections, disclosure requirements, and oversight from the Consumer Financial Protection Bureau.

Frequently asked questions

Splitero is a financial technology company that offers homeowners a way to access their home equity without taking on additional debt or making monthly payments.

Splitero now operates in Arizona, California, Florida, Idaho, Missouri, Montana, Nevada, New Jersey, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, and Wyoming.

Homeowners can receive funds based on their home equity. They can later repurchase this equity through a home sale, refinance, or cash settlement without penalty. The company also offers a Maturity Match option to align the investment term with the mortgage timeline.

Regulators are considering classifying home equity investments as residential mortgages to ensure they are subject to federal consumer protections and disclosure requirements, similar to traditional loans.

What Happens Next

01A Senate bill, the Home Equity Lending Integrity Act, may classify home equity investments as residential mortgages.
02The proposed bill could subject HEI to federal consumer protections and CFPB oversight.

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Cadence

How It Developed

Splitero expanded its home equity investment services to Idaho, Missouri, Montana, and Wyoming.
The company now operates in 17 states.
CEO Michael Gifford stated the expansion helps homeowners access equity without monthly payments.
Homeowners hold $35 trillion in home equity nationally.
Splitero offers a Maturity Match option aligning investment terms with mortgage timelines.
Homeowners can repurchase equity investments without penalty through sale, refinance, or cash settlement.
The expansion occurs amid increased regulatory scrutiny of home equity investment frameworks.

Sources

T1
Splitero expands home equity investment offering to four new statesHousingWire

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