Digital Library: Courts Expose Deception of Home Equity “Investments”

August 15, 2025 — Article

Home equity “investment” (HEI) loans, often marketed as a quick way for homeowners to get cash without the burden of monthly payments, are facing a new wave of legal challenges. Recent court decisions, including a significant ruling from the Ninth Circuit Court of Appeals, are upholding claims against HEI loans. Courts are increasingly recognizing that what these companies call “investments” are, in fact, predatory mortgage loans subject to state consumer protection laws.

This article explores these pivotal cases and offers key takeaways for litigators representing homeowners. By understanding how courts are interpreting these complex agreements, attorneys can build stronger cases against HEI lenders and protect consumers from deceptive practices.