On this page 9 sections
In short
- The core question: whether HEIs are investments, as the companies say, or loans that must follow lending, licensing and rate laws.
- Settled: Unlock reached settlements with the Minnesota and Colorado attorneys general in 2026. Unlock denied the Minnesota allegations.
- Pending: Massachusetts's lawsuit against Hometap, plus several proposed class actions against Hometap and Unison.
- Splitero: we found no lawsuit or regulatory action over its HEI product.
HELOCFacts is not affiliated with or endorsed by Point, Splitero, Hometap, Unlock or Unison. Company names are used only to describe how their contracts are structured. This page summarizes public filings and announcements. Allegations in a lawsuit are claims, not findings. This isn't legal advice.
What the lawsuits are about
HEI companies describe their contracts as investments in your home, not loans, so they say lending laws on licensing, interest rate caps and disclosures don't apply. Regulators and consumers suing these companies argue the contracts work like loans, or like reverse mortgages, and should follow those laws. Courts haven't settled the question nationally.
By company
| Company | What's been filed or decided | Status |
|---|---|---|
| Hometap | Massachusetts Attorney General lawsuit, filed February 2025. It alleges the product works as an unlawful reverse mortgage, provides cash without checking income or assets, and is marketed deceptively. Hometap stands by its products. | In August 2025, the court denied Hometap's motion to dismiss. Ongoing. |
| Hometap | Proposed class actions filed in 2026 in New Jersey federal court and other states. They allege the contracts are high-cost mortgage loans. | Early stage. Allegations only. |
| Unison | Olson v. Unison. In August 2025, the federal Ninth Circuit Court of Appeals held that a 2019 Unison agreement created a consumer credit obligation under Washington's reverse mortgage law, and revived the homeowners' consumer protection claim. | Reported settled in October 2025. |
| Unison | Proposed class actions and individual suits filed in 2025 and 2026 in California, Colorado and Washington, D.C., including one brought with the AARP Foundation. They allege unlicensed mortgage lending and deceptive practices. | Early stage. Allegations only. |
| Unlock | Minnesota Attorney General consent judgment, August 2026. Unlock must stop offering its agreements in Minnesota unless licensed and follow state mortgage law. Total relief: $944,626. | Settled. Unlock denied the allegations. |
| Unlock | Colorado Attorney General settlement, June 2026. The AG concluded Unlock's agreements are consumer credit under Colorado law. Unlock must be licensed before resuming and pay restitution, $283,375 to 125 consumers so far. | Settled. |
| Unlock | Roberts v. Unlock, New Jersey federal court, filed 2024. The CFPB filed a brief in January 2025 arguing the contract is a mortgage loan under federal law, then withdrew it in February 2025. | Pending. |
| Point | A consumer case in Arizona state court, filed 2025. In December 2025, the court denied Point's motion to send the case to arbitration. | Point has appealed. |
| Splitero | We found no lawsuit or regulatory action over Splitero's HEI product. | As of October 29, 2026. |
States that regulate HEIs
- Maryland: since July 2023, these agreements are treated as mortgage loans, so companies need a mortgage lender license and must give specific disclosures.
- Connecticut: since October 2025, shared appreciation agreements fall under lending and licensing law, with cost disclosures before signing.
- Maine: a 2026 law treats them as consumer credit. It requires licensing, housing counseling and APR disclosures, and bans mandatory arbitration and prepayment penalties.
- Illinois: licensing since January 2025, and rules effective June 2026 that require counseling and cap the annual cost.
- Minnesota and Colorado: no HEI-specific law, but each attorney general has treated these agreements as credit under existing law.
Bills are pending elsewhere, including Pennsylvania, and a federal bill introduced in June 2026 would bring HEIs under the Truth in Lending Act. None of those is law yet.
What the CFPB has said
In January 2025, the Consumer Financial Protection Bureau published research and a consumer advisory on home equity contracts. It found the amount owed often grows 19.5% to 22% a year in the early years, and warned that homeowners could be forced to sell to repay. The research is still on the CFPB's website. Under new leadership, the CFPB withdrew its court brief in the Unlock case in February 2025, so its current position is unclear.
If you have an HEI
- A lawsuit against your HEI company doesn't by itself change what your contract requires. Keep making decisions based on your agreement.
- If you believe the contract was misrepresented to you, talk to a consumer protection attorney or your state attorney general.
- Get a written payoff statement, then compare your options with the HEI payoff calculator and HEI vs. HELOC.
Where to file a complaint
- The Consumer Financial Protection Bureau's complaint portal at consumerfinance.gov/complaint
- Your state attorney general's consumer protection office
- Your state's financial or mortgage regulator
- The Better Business Bureau
Sources
- Massachusetts Attorney General, Feb. 20, 2025
- Minnesota Attorney General, Aug. 7, 2026
- Colorado Attorney General, June 24, 2026
- HousingWire on Olson v. Unison, Aug. 8, 2025
- CFPB, Home Equity Contracts: Market Overview, Jan. 15, 2025
- National Consumer Law Center case library
Thinking about paying off your HEI?
A licensed loan officer can compare it with HELOC and home equity loan options, including whether you'd have enough equity after the payoff.
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Frequently asked questions
Is Splitero being sued?
As of October 29, 2026, we found no lawsuit or regulatory action over Splitero's home equity investment product.
Has Point been sued?
A consumer case against Point was filed in Arizona state court in 2025. The court denied Point's request to move it to arbitration, and Point has appealed. The case hasn't been decided.
Does a lawsuit mean I can get out of my HEI?
Not by itself. A case against your HEI company doesn't change your contract unless a court or regulator acts on your agreement. A consumer protection attorney can tell you whether any case applies to you.
Are HEIs regulated?
In some states. Maryland, Connecticut, Maine and Illinois regulate them by law or rule, and attorneys general in Minnesota and Colorado have treated them as credit. Elsewhere, the rules are unsettled.
Questions about your own situation? Contact a licensed loan officer. It's optional, and your information is not sold to lead marketplaces.