Heter Iska
NFTYDoor offers technology that enables banks, credit unions, wholesale lenders, and broker partners to deliver modern, streamlined HELOCs. Lead Bank HELOC transactions, including those originated through the NFTYDoor platform, are kosher certified through Heter Iska ID K-840, issued by KFI. This structure allows originators and broker partners to offer a HELOC that is certified by KFI as complying with Jewish law regarding ribbis, available to any borrower who wishes to comply with Jewish law. Lead Bank's Board of Directors has adopted this Heter Iska.
The Heter Iska is a separate, optional document that exists outside the borrower's loan agreement. Lead Bank has already signed it; a borrower who wants its coverage simply signs a copy before closing; see "How to Get One" below. It is not a term of the loan, and signing it (or choosing not to) does not change any term, condition, or right the borrower has under their loan.
View the Kosher Certificate here.
How It Works
Rather than changing the loan's payment terms, the Heter Iska recharacterizes the funds advanced as an investment in the borrower's property, and the payments as principal and return on investment rather than principal and interest, for religious purposes only. Borrowers pay the same amount, on the same schedule, as they would on a standard HELOC.
If a question arises about how the Heter Iska characterizes profit under Jewish law, that question is addressed under the Heter Iska instrument itself, separately from the loan, and may involve a Beth Din (rabbinic court). This process applies only to that religious-law question. It is not a term of the borrower's loan, does not replace or limit any legal right or remedy the borrower has under their loan, and does not require the borrower to resolve any loan-related dispute anywhere other than through their normal legal rights and the civil court system.
The Heter Iska ends if the loan is sold or securitized. When that happens, the loan reverts to a standard interest-bearing structure with the new investor. If you signed the Heter Iska for religious reasons, keep this in mind. Ask your loan officer or a religious advisor any questions before signing.
How to Get One
The Heter Iska is optional and available at no cost for Lead Bank HELOC transactions. It must be set up before your loan closes.
- Before closing, download the document or ask your loan officer for a copy.
- Fill in your HELOC information and account number (your loan officer can help).
- Lead Bank has already signed. Sign where indicated. An electronic signature is fine before closing.
- Keep a copy for your records; your loan officer keeps one as well.
Requesting one or not has no effect on your application, your loan terms, or your legal rights.
Available at origination only. The Heter Iska must be signed before your HELOC closes. We do not currently support adding a Heter Iska to a HELOC after closing (including by ink-signature execution). It applies to Lead Bank HELOC transactions only. For loans made by other lenders on the NFTYDoor platform, ask your loan officer whether that lender offers its own Heter Iska.
Your Protections Stay in Place
The Heter Iska addresses religious law only. It does not limit or replace any borrower's rights under TILA, RESPA, ECOA, or the right of rescission.
All loans are made by independent, licensed lenders. This page describes an optional religious accommodation and is not an offer of credit or an advertisement of credit terms.
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