Bill > S833

This bill aims to protect homeowners by establishing strict regulations for shared appreciation mortgages (SAMs), which are financial products that allow lenders to receive a percentage of a property's value appreciation in exchange for more favorable loan terms. The key provisions include requiring mandatory third-party counseling by a HUD-certified housing counselor (paid for by the lending entity) before a homeowner can enter into a shared appreciation mortgage, and limiting the lender's share of property appreciation to 15% of the property's value. The bill mandates comprehensive written disclosure to homeowners, explaining the terms of the mortgage, potential payment scenarios, and the specific percentage of appreciation the lender can claim. Lenders must provide homeowners with at least 7 days to review the notice and are prohibited from proceeding if the homeowner does not complete required housing counseling. Additionally, the bill stipulates that lending entities will be liable for violations of federal and state laws, and the Attorney General is authorized to create and modify regulations to implement these requirements, with the goal of protecting homeowners from potentially predatory lending practices in real estate transactions.

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https://malegislature.gov/Bills/194/S833