CFPB, Consumer Advisory: Beware of Costly, Risky, and Complex Home Equity “Investment” Contracts (Jan. 15, 2025)

This January 2025 CFPB Consumer Advisory highlights issues with consumer understanding of Home Equity Investment Loans, including that the companies may not provide standard disclosures or comply with laws protecting consumers when taking out a mortgage.  It also describes pitfalls—the loans are expensive, the homeowner may have to sell the home if unable to repay the loan all at once, and a lien will be placed on the home.  The advisory also lists where homeowners can get help.