Key facts
- Home equity investments allow homeowners to access equity without monthly payments.
- HEI providers receive a share of future home-price appreciation.
- Repayment is typically due when the homeowner sells or refinances.
- Some lawsuits allege HEI products are predatory, with implied interest rates of 30% or more.
- Point is engaging with state governments on regulatory efforts.
- The Urban Institute found 35% of cash-out refinance, home improvement, and HELOC applications were denied in 2024.
Home equity investments (HEIs) are attracting consumer and mortgage professional interest, but regulatory uncertainty is a significant hurdle. Point, a major HEI provider, is actively working to increase awareness and adoption through initiatives like a new third-party origination channel and a recent $508.6 million securitization. Samuel Bjelac, head of wholesale at Point, believes HEIs can thrive during market slowdowns as originators seek alternative business avenues. Homeowners are drawn to HEIs for accessing equity without monthly payments, receiving a lump sum in exchange for a share of future home appreciation, typically repaid upon sale or refinance.