Unlock agrees to restitution, compliance with Colorado laws on home equity agreements

This settlement follows a determination by Colorado regulators that Unlock's HEA contracts function as loans, not unregulated investment products. Homeowners receive a lump-sum payment in exchange for a percentage of their home's future value. The state concluded these arrangements are subject to interest rate limits and other consumer protections.

As part of the agreement, Unlock must pay restitution to affected consumers. As of June 24, the company identified $283,375 owed to 125 Colorado homeowners whose contracts exceeded state interest rate limits. This amount is anticipated to grow as more loans are finalized.

Attorney General Phil Weiser stated that the agreement ensures homeowners receive owed restitution and that Unlock will follow Colorado lending laws moving forward. The action highlights increasing state scrutiny of alternative home equity products and signals that shared-equity agreements may be treated as consumer credit, requiring full application of rate caps, disclosures, and licensing rules.