Manassas, Va. — The Coalition for Home Equity Partnership (CHEP), a national non-profit association which represents leading home equity investment (HEI) providers, today issued the following statement regarding the resolution of Unison v. Olson.
The case examined whether a specific HEI contract could be classified as a mortgage loan—and specifically a reverse mortgage—under Washington state law. While an earlier, preliminary and unpublished Ninth Circuit opinion permitted the plaintiffs to make that argument, the parties have now settled, the appeal has been voluntarily dismissed, and the Ninth Circuit vacated their opinion.
As a result, the trial court’s original conclusion, that the HEI at issue was not a loan under Washington law, is no longer overturned, and the now-vacated appellate ruling carries little practical impact for the broader HEI market. The prior opinion was never binding on Washington courts or regulators.
In practice, the Washington Department of Financial Institutions (DFI) continues to treat HEIs as a type of mortgage product, rather than a reverse mortgage. On March 10, 2025, DFI filed a Preproposal Statement of Inquiry under CR-101 (October 2017) announcing its consideration of, and solicitation of comments with respect to, amending chapter 208-620 of the Washington Administrative Code to clarify regulatory requirements for HEI products under Washington’s Consumer Loan Act. The DFI is preparing an initial draft of proposed regulations for HEIs that build on the state’s existing mortgage framework and has directed HEI providers to collect the state’s new Foreclosure Prevention Fee, which reverse mortgage lenders are exempt from.
“The resolution of the Olson case reinforces what has been true in practice: Washington regulators are not treating HEIs as reverse mortgages. We welcome the regulatory clarity emerging in the state and remain committed to working with policymakers to ensure home equity investments are offered responsibly, transparently, and with strong consumer protections,” said Cliff Andrews, President of CHEP.
CHEP and its members will continue collaborating with regulators and lawmakers in Washington and nationwide to support consistent, consumer-focused oversight of home equity investment products.
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ABOUT THE COALITION FOR HOME EQUITY PARTNERSHIP
The Coalition for Home Equity Partnership (CHEP) is a collective of financial services companies that offer flexible ways to tap home equity. The association is dedicated to the protection and promotion of the shared equity product industry with a focus on education, advocacy and marketplace innovation that improves homeowners’ financial lives. For more information, visit homeequitypartnership.org.