Illinois continues to move forward in regulating “shared appreciation agreements.” On August 15, 2025, the Illinois Department of Financial and Professional Regulation proposed regulations implementing the Residential Mortgage License Act of 1987 to govern “shared appreciation agreements.” The term “shared appreciation agreements” is generally interpreted to include products commonly known as home equity contracts,” “home equity investments,” or “home equity agreements. The proposed regulations provide originators of these products with a roadmap for compliance with the Residential Mortgage License Act. Please read our Legal Update for a full discussion these proposed regulations.
