Legal Options After A Fintech Approved A Complex 30-year “home Equity Investment” For My 80-year-old Dying Father And Disabled Mother

In November 2024, my 80-year-old father signed a “Home Equity Investment (HEI)” contract with Point Digital Finance, a California fintech that mails offers for cash with “no monthly payments.” He was terminally ill, on strong pain medication, and cognitively declining. My 80-year-old mother, wheelchair-bound, co-signed but doesn’t remember the call Point cites as proof of her understanding and she was not included in the counseling. My father passed away 59 days after signing the contract with Point.

When asked about protections, Point’s official response to us and regulators has been:

“The Home Equity Investment is structured as an option contract and is therefore exempt from the Truth in Lending Act (TILA) and other lending regulations.”

That classification lets them avoid lending laws even though the agreement is recorded as a mortgage lien. In my parents case, the appraised value of their home was cut by roughly 25% (what they call “risk adjustment”). The payoff is calculated in two ways, either the balance compounds monthly at an 18% annualized rate, or Point takes over 65% of the home’s appreciation starting from the risk adjusted amount—whichever is smaller. My mother had to sell her house 10 months after signing the contract in order to pay for her required care. In her case the monthly compounded rate was used for payoff.

The Massachusetts Attorney General’s Office, CFPB, and BBB all contacted Point, but every response was identical: “We acted in accordance with all applicable laws.” None addressed how such a contract was deemed suitable for an elderly, terminally ill and disabled couple in their 80's.

Point has since paused new HEI activity in Massachusetts after another HEI provider was sued by the AG for predatory practices. They’ve raised over $400 million from major investors (Andreessen Horowitz, Ribbit Capital, Prudential, Redwood Trust) and reportedly use offshore “closers” in the Philippines to finalize these 30-year contracts with U.S. homeowners.

I’ve already spoken with several lawyers, but every answer is the same: companies like Point Digital Finance operate in a legal grey area with deep resources. Pursuing any legal action could take years and more money than my family has. Given that my father’s capacity was severely impaired and my mother didn’t understand what she signed, is there any legal basis for challenging this under unconscionability, capacity, or predatory lending doctrines—even if they call it an “investment”? Is there anything else that I can do to to help my mother? Would any state or federal agency have jurisdiction to step in besides those that I've already contacted?

Location: Massachusetts, USA