Bill > H1145

This bill establishes comprehensive regulations for shared appreciation mortgage loans in Massachusetts, creating a detailed framework to protect homeowners. The legislation defines a shared appreciation mortgage as a loan where the lender can receive a percentage of the property's value increase upon certain triggering events, such as property sale or loan maturity. Key provisions include limiting the shared appreciation payment to 15% of the property's appreciation or value, mandating that borrowers receive HUD-certified housing counseling at least 14 days before loan consummation, and requiring mortgage holders to pay for this counseling. The bill prohibits several predatory lending practices, such as including penalties for early loan termination, mandatory arbitration clauses, or confidentiality provisions. It also requires lenders to provide periodic statements, notify borrowers of servicing transfers, and act in good faith during loan servicing and potential foreclosure actions. Additionally, the bill includes special protections for foreclosure-related transactions and requires lenders to provide detailed notifications before shared appreciation payments become due, including options for home retention. If any provisions are violated, the contract can be voided, and the borrower may be entitled to damages and attorney's fees. The Attorney General is empowered to enforce these regulations and can recommend license revocation for non-compliant entities.

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https://malegislature.gov/Bills/194/H1145