Bill > H1106

This bill establishes comprehensive regulations for shared equity investments in residential properties, creating new protections and requirements for both shared equity investors and homeowners. The bill mandates that shared equity investors provide homeowners with a detailed three-day rescission period, ensuring they can cancel the investment before it becomes binding. It requires that homeowners have at least 10% initial home equity, and that all property valuations be conducted by independent third parties with industry-standard methods. The bill introduces extensive disclosure requirements, compelling investors to provide clear, comprehensive information about the investment, including potential settlement scenarios under various property value changes. Investors are prohibited from charging early settlement penalties, restricting property use, or requiring affiliated appraisals without consent. The bill empowers the Commissioner of Financial Services to regulate and examine shared equity investors, with the ability to assign performance ratings, conduct investigations, and impose penalties of up to $5,000 per violation (with a maximum of $100,000). The legislation also establishes mechanisms for civil actions, potential criminal penalties for violations, and creates a framework for prohibiting individuals from participating in shared equity investments if they are found to have committed serious infractions. Ultimately, the bill aims to protect homeowners by creating transparency, preventing predatory practices, and establishing clear standards for shared equity investment products.

Business and Industry

https://malegislature.gov/Bills/194/H1106