Dear Members of the Banking Committee,
Please accept this written testimony on behalf of the Coalition for Home Equity Partnership (CHEP), related to Raised Senate Bill 1257 – An Act Concerning Consumer Credit and Commercial Financing (SB 1257). CHEP believes SB 1257 represents a significant step toward establishing a clear regulatory framework for the industry.
CHEP was founded in 2024 by three leading national financial services companies – Hometap Equity Partners, LLC, Point Digital Finance, Inc., and Unlock Technologies, Inc. – dedicated to providing homeowners with innovative home-finance solutions. These comparatively new products are known as shared appreciation agreements (SAA) in Connecticut.
Section 25 of SB 1257 ensures that consumers receive clear and comprehensive disclosures when considering an SAA while also bringing much-needed regulatory clarity to the industry. CHEP members believe that well-informed homeowners make better financial decisions, and we appreciate the opportunity to collaborate with regulators on this important issue.
CHEP members have worked closely with the Connecticut Department of Banking and their counterparts at the Maryland Office of Financial Regulation to help develop this disclosure framework. This collaborative effort reflects our industry’s commitment to transparency and consumer protection. We recognize that SAAs are a unique financial product, and we appreciate Connecticut’s leadership in establishing clear guidelines that ensure homeowners fully understand the terms of these agreements.
Importantly, CHEP members already use similar disclosure forms in their current business practices. Our industry has long prioritized transparency by providing homeowners with detailed financial information about their agreements, including settlement scenarios and appreciation-sharing terms. This bill formalizes and standardizes the existing best practices of responsible SAA providers, ensuring consistency across the industry and safeguarding consumers from misleading or incomplete information.
CHEP also welcomes the regulatory certainty this bill brings to the SAA industry. In the absence of clear guidelines, providers and consumers alike face unnecessary uncertainty regarding compliance and consumer protections. By establishing clear disclosure requirements, this bill provides a stable framework that benefits homeowners while allowing responsible SAA providers to continue offering innovative home-financing solutions.
Finally, CHEP looks forward to continuing our work with the Connecticut Department of Banking on future legislation and regulations that recognize the unique structure of SAAs. We appreciate the opportunity to collaborate on policies that both protect consumers and support the growth of alternative home financing options.
We urge the legislature to support this bill and ensure its passage. Thank you for your leadership on this important issue, and we welcome the opportunity to provide any additional information or assistance as the committee considers this measure.
Respectfully,
Coalition for Home Equity Partnership
Ed McFadden
President
News
RE: SB 1257 – An Act Concerning Consumer Credit and Commercial Financing
Dear Members of the Banking Committee,
Please accept this written testimony on behalf of the Coalition for Home Equity Partnership (CHEP), related to Raised Senate Bill 1257 – An Act Concerning Consumer Credit and Commercial Financing (SB 1257). CHEP believes SB 1257 represents a significant step toward establishing a clear regulatory framework for the industry.
CHEP was founded in 2024 by three leading national financial services companies – Hometap Equity Partners, LLC, Point Digital Finance, Inc., and Unlock Technologies, Inc. – dedicated to providing homeowners with innovative home-finance solutions. These comparatively new products are known as shared appreciation agreements (SAA) in Connecticut.
Section 25 of SB 1257 ensures that consumers receive clear and comprehensive disclosures when considering an SAA while also bringing much-needed regulatory clarity to the industry. CHEP members believe that well-informed homeowners make better financial decisions, and we appreciate the opportunity to collaborate with regulators on this important issue.
CHEP members have worked closely with the Connecticut Department of Banking and their counterparts at the Maryland Office of Financial Regulation to help develop this disclosure framework. This collaborative effort reflects our industry’s commitment to transparency and consumer protection. We recognize that SAAs are a unique financial product, and we appreciate Connecticut’s leadership in establishing clear guidelines that ensure homeowners fully understand the terms of these agreements.
Importantly, CHEP members already use similar disclosure forms in their current business practices. Our industry has long prioritized transparency by providing homeowners with detailed financial information about their agreements, including settlement scenarios and appreciation-sharing terms. This bill formalizes and standardizes the existing best practices of responsible SAA providers, ensuring consistency across the industry and safeguarding consumers from misleading or incomplete information.
CHEP also welcomes the regulatory certainty this bill brings to the SAA industry. In the absence of clear guidelines, providers and consumers alike face unnecessary uncertainty regarding compliance and consumer protections. By establishing clear disclosure requirements, this bill provides a stable framework that benefits homeowners while allowing responsible SAA providers to continue offering innovative home-financing solutions.
Finally, CHEP looks forward to continuing our work with the Connecticut Department of Banking on future legislation and regulations that recognize the unique structure of SAAs. We appreciate the opportunity to collaborate on policies that both protect consumers and support the growth of alternative home financing options.
We urge the legislature to support this bill and ensure its passage. Thank you for your leadership on this important issue, and we welcome the opportunity to provide any additional information or assistance as the committee considers this measure.
Respectfully,
Coalition for Home Equity Partnership
Ed McFadden
President
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