Bill > H974

This bill aims to further define and regulate subprime loans in the state of Massachusetts. It requires that first-time home loan borrowers who are taking out a subprime loan with a variable or adjustable rate of interest must affirmatively opt-in in writing and receive counseling from an approved third-party nonprofit organization. If a mortgagee violates this requirement, the variable or adjustable rate terms of the loan will not be enforceable, and the mortgagee will only be able to collect the lesser of the original interest rate or the current adjusted interest rate. The bill also exempts Qualified Mortgages that meet certain federal specifications from these requirements as of January 1, 2022.