"But as the lawsuit continues to play out, Massachusetts is no longer listed among the states the company does business in. The suit in Massachusetts is similar in nature to a case filed in Washington state against fellow HEI provider Unison. An appellate court recently ruled in favor of the plaintiffs and determined that Unison's product was a reverse mortgage under state law. Unison initially sought to appeal that decision but settled with the plaintiffs shortly thereafter."
"Among the legal arguments addressed in the filings, Hometap labels the lawsuit as an about-face. The company claims that neither the AGO's office nor the Massachusetts Division of Banks (DOB) expressed concerns about the company's HEI product going back to 2018, when they were first introduced in the state. The company also said that the state bank regulator has acknowledged that HEI products differ in many aspects from mortgage loans."
Hometap operates in 16 states and Washington, D.C., and asserts confidence in the integrity of its products and the financial flexibility they provide Massachusetts homeowners. Massachusetts is no longer listed among the states in which the company does business as the lawsuit proceeds. The Massachusetts suit resembles a Washington state case against HEI provider Unison, where an appellate court ruled Unison's product qualified as a reverse mortgage under state law and Unison later settled after initially pursuing appeal. Court filings show plaintiffs sought to strike insufficient defenses while defendants attempted to retain them. Hometap calls the suit an about-face, says neither the AGO nor the Division of Banks raised concerns since the product's 2018 introduction, and notes DOB acknowledgment that HEIs differ from mortgage loans. Companion bills H.1106 and S.705 would specify HEIs are not loans and set obligations to prevent deceptive or unfair practices; Hometap states it already follows those obligations and helped develop the bills. The company asserts the Commonwealth filed the action shortly after the legislative process began.
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